India’s energy strategy is shifting rapidly one of the world’s most important oil routes. As shipping through the Strait of Hormuz becomes uncertain, New Delhi has ramped up
The shipments of crude oil from the traditional suppliers in the Gulf region are delayed. India, which is the third-largest crude oil importer in the world, is seeking alternative sources to meet its massive demand and ensure that its domestic markets are kept stable.
India’s imports of Russian crude rose sharply in March, jumping nearly 50 per cent compared with the previous month as the country sought to offset supply disruptions caused by the conflict in the Middle East, according to news agency PTI. Ship-tracking data showed India purchased around 1.5 million barrels per day of Russian oil in March, up from 1.04 million barrels per day in February.
This change in buying behaviour comes against the backdrop of the This waiver was granted to help stabilise global energy markets and ensure that key importing countries like India can cope with supply disruptions caused by the Middle East conflict.
India currently consumes about 5.8 million barrels of crude oil per day, with nearly 88 per cent of that demand met through imports. A large portion of these supplies typically comes from Middle Eastern producers such as Saudi Arabia, Iraq and the United Arab Emirates.
However, most of these cargo ships transit through the Strait of Hormuz, which is a narrow waterway and has emerged as a key area of conflict in the region.
The Strait of Hormuz normally carries a significant share of India’s energy imports. Roughly 2.5 to 2.7 million barrels of crude oil per day bound for India typically transit through the chokepoint.
The route also handles 55 per cent of India’s cooking gas imports and around 30 per cent of liquefied natural gas shipments, both crucial for electricity generation, fertiliser production and household cooking.
“India was expected to import around 2.6 million barrels per day of crude via the Strait of Hormuz in March. At the same time, we are seeing a notable pickup in Russian barrels,” said Sumit Ritolia, an analyst at Kpler, as quoted by PTI.
“Based on vessel tracking and credible market sources, incremental Russian crude imports in March could reach 1–1.2 million bpd (over and above the February volumes), which means the effective shortfall from Hormuz exposure narrows to around 1.6 million bpd,
he added.
While crude oil supply can be partially managed through diversification, analysts warn that liquefied petroleum gas (LPG) may prove harder to replace if disruptions in the Gulf persist.
India consumes roughly 1 million barrels per day of LPG, but domestic production meets only 40-45 per cent of demand. The remaining 55–60 percent must be imported, and most of those imports pass through the Strait of Hormuz.
According to Ritolia, nearly 80-90 per cent of India’s LPG imports originate in the Middle East, making the supply chain particularly vulnerable to regional instability.
India alone consumes roughly 900,000 to 1 million barrels of LPG per day, with about 600,000 barrels imported.