India has begun securing more crude oil from various global sources due to the ongoing conflict involving Iran disrupting energy supplies in West Asia. Indian refiners are in talks to procure oil from countries like the United States, Russia, and West African producers to maintain stable fuel availability in case of prolonged geopolitical tensions. Concerns have arisen over potential disruptions in oil transport via the Strait of Hormuz, a crucial maritime route for global energy markets, with almost half of India’s crude oil imports passing through it in February.
To mitigate risks, refineries in India are deferring scheduled maintenance shutdowns and operating at normal processing levels to ensure sufficient fuel production to meet demand in the short term. Sources indicate that non-conflict sources are fully operational, with approximately 60% of India’s crude imports originating from outside the Strait of Hormuz in 2025. Following the Middle East conflict escalation, this proportion has risen to nearly 70%.
The supply situation has been aided by a temporary waiver from the US Treasury Department permitting the sale and delivery of sanctioned Russian crude that was loaded onto ships before March 5. This waiver, valid until April 5, enables the transit and delivery of cargoes without violating sanctions. Despite the geopolitical tensions, Union Petroleum and Natural Gas Minister Hardeep Singh Puri reassured that India’s energy supply remains stable. Puri emphasized that the nation is effectively managing energy availability, affordability, and sustainability amidst the current global scenario.
