War in the Middle East, Global Energy on Edge
The recent outbreak of war between Israel and Iran—fueled further by U.S. airstrikes on Iranian nuclear sites—has shaken the global energy market, raising alarms over possible disruptions in oil supply from the Middle East. With the Strait of Hormuz under threat of closure and the broader region on the brink of wider conflict, major oil-importing nations face renewed uncertainty. However, India, the world’s third-largest oil importer, has taken steps to insulate itself from the fallout. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has assured citizens that the country is well-prepared and will not face any immediate fuel shortages, even if the crisis deepens.
India’s Fuel Resilience: Diversification as the First Line of Defense
Amid mounting tensions, Minister Puri emphasized that India’s energy infrastructure has matured significantly, enabling the country to manage potential disruptions. “We have diversified our sources in the last few years,” he stated, noting that India’s dependence on supplies routed through the volatile Strait of Hormuz has decreased.
This strategic diversification has been key. With increasing imports from non-Middle Eastern countries like Russia, the U.S., and Brazil, India has reshaped its crude oil basket. Russian oil, in particular, is routed via the Suez Canal and Cape of Good Hope, avoiding the choke point of Hormuz altogether.
In the face of Iran’s threats to block the strait—through which nearly 20 million barrels of oil pass daily—India’s varied import channels provide a vital cushion. Currently, only about 2 million barrels per day of India’s total 5.5 million bpd oil imports flow through Hormuz.
Strategic Reserves: A National Energy Buffer
India’s foresight in establishing strategic petroleum reserves has further strengthened its energy security. Minister Puri highlighted facilities at Pudur (2.25 million metric tonnes), Visakhapatnam (1.33 MMT), and Mangalore (1.5 MMT), with an additional site under development at Chandikhol. These reserves serve as a crucial buffer against both price volatility and supply disruptions during emergencies.
Such reserves not only help maintain domestic supply stability but also support price control mechanisms in times of international crisis, shielding Indian consumers from immediate impacts at the fuel pump.
Infrastructure Milestones and Energy Preparedness
India now boasts 23 modern operational refineries with a combined capacity of 257 million metric tonnes per annum. This extensive network enables the rapid processing of crude oil from a variety of sources, supporting both industrial and retail fuel needs across the country.
The minister also noted that oil marketing companies—namely Indian Oil, Bharat Petroleum, and Hindustan Petroleum—have adequate stocks to meet demand for several weeks. Supplies continue to flow steadily through multiple routes, reducing the risk of immediate shortages even as global logistics face mounting strain.
Global Risks, Local Stability: The Broader Impact
Despite these assurances, broader economic risks remain. A prolonged conflict or any interruption in major Middle Eastern supplies could drive global crude prices sharply upward. For a country like India, which imports nearly 85% of its crude oil, this would lead to a ballooning import bill, inflationary pressure, and a potential depreciation of the rupee.
Yemen’s Houthi rebels have already warned of renewed attacks on oil shipping routes in retaliation for U.S. action against Iran, signaling broader instability that could reverberate across supply chains.
Nevertheless, India’s shift toward diversified sourcing and strengthened reserves gives it a relative advantage, allowing it to absorb shocks more effectively than in previous geopolitical crises.
Strategic Foresight Shields India from Fuel Crisis
As the Middle East plunges deeper into conflict, India’s energy security strategy is being put to the test—and so far, it is holding strong. With multiple sourcing routes, growing imports from Russia and the Americas, robust refining capacity, and strategic petroleum reserves in place, the country is better prepared than ever to weather external disruptions.
Minister Hardeep Singh Puri’s assurance is backed by real infrastructure and policy groundwork laid over recent years. While global markets remain volatile, and the risk of higher fuel prices persists, India’s domestic fuel availability appears secure for now—testament to a resilient and forward-looking energy policy amidst an increasingly uncertain world.
(With agency inputs)
