India currently has crude oil and refined fuel stocks that can last for about 25 days, government sources said. At the same time, officials are looking for alternative countries to import crude oil, LPG and LNG, as tensions rise in the Middle East.
There is no immediate plan to increase petrol and diesel prices, government sources added.
Iran’s Islamic Revolutionary Guard Corps (IRGC), said on Monday that the Strait of Hormuz is “closed” for shipping traffic. It warned that any vessel trying to pass through the key waterway would be set on fire, according to Iranian state media.
The statement marks a sharp escalation in the ongoing conflict involving Iran on one side and Israel and the US on the other.
The US and Israel widened their air operations against Iran on Monday. Israel also carried out attacks in Lebanon. In response, Iran launched strikes on energy infrastructure in Gulf countries and targeted tankers moving through the Strait of Hormuz.
As a result, shipping through the narrow passage has become increasingly risky. Several tankers and container ships are avoiding the route. Insurers have cancelled coverage for vessels operating in the area, making it even harder for ships to move through the region.
Global oil prices rose for the third straight session on Tuesday. Traders are worried that supplies from the Middle East, one of the world’s most important oil-producing regions, could be disrupted.
Shipping costs for oil and gas have also jumped sharply as companies assess the growing risks.
With 25 days of oil stocks available, India has some breathing space for now. However, officials are actively scouting for alternative sources to secure supplies of crude oil, LPG and LNG.
For the moment, consumers are unlikely to see any change in petrol and diesel prices. But much will depend on how the situation in the Strait of Hormuz develops in the coming days.