70% of India’s crude oil imports now bypass Strait of Hormuz amid West Asia tensions
VINOD BHAT
NEW DELHI, Mar 11: Amid rising geopolitical tensions in West Asia and disruptions around the strategic Strait of Hormuz, the Government of India on Wednesday reassured the nation that energy supplies remain secure and that comprehensive contingency measures have been put in place to safeguard fuel availability, maritime trade and the welfare of Indian nationals in the region.
The assurance came during a high-level inter-ministerial media briefing held at the National Media Centre in New Delhi, where senior officials from the Ministries of Petroleum and Natural Gas, External Affairs, Ports, Shipping and Waterways, and Information and Broadcasting outlined the government’s preparedness to deal with the evolving regional situation.
Officials stated that India has significantly diversified its energy procurement strategy over the years, which has reduced its dependence on the Strait of Hormuz — a crucial global oil transit route currently affected by tensions in the Persian Gulf region.
Diversification Shields India’s Crude Supply
According to the Ministry of Petroleum and Natural Gas, India’s crude oil supply remains stable despite disruptions in the region. India consumes approximately 55 lakh barrels of crude oil per day, and officials said the volumes currently secured exceed what would typically arrive through the Strait of Hormuz during this period.
India now imports crude oil from around 40 countries, a diversification strategy that has significantly strengthened energy security. As a result, nearly 70 percent of India’s crude oil imports are now routed through alternative routes outside the Strait of Hormuz, compared to about 55 percent earlier.
Officials also revealed that two additional crude oil cargoes are already en route to India and are expected to arrive in the coming days, further bolstering the country’s supply position.
Refineries across the country are operating at very high capacity utilisation levels, in some cases even exceeding 100 percent capacity, ensuring adequate fuel production for domestic consumption.
Natural Gas Supplies Being Rebalanced
India’s total natural gas consumption currently stands at about 189 million metric standard cubic metres per day (MMSCMD), out of which approximately 97.5 MMSCMD is produced domestically. However, about 47.4 MMSCMD of supply has been impacted due to force majeure conditions arising from the ongoing developments in the region.
To address the shortfall, the government has initiated procurement through alternative suppliers and routes. Gas companies have also secured new LNG cargoes from alternative sources, with two shipments already on their way to India.
To manage available gas supplies effectively, the government issued a Natural Gas Control Order on March 9 under the Essential Commodities Act. The order prioritises supply for critical sectors.
Under the revised allocation system, domestic piped natural gas (PNG) supply and compressed natural gas (CNG) for vehicles will continue to receive full supply without any cuts. Industrial consumers such as tea industries and manufacturing units connected to the gas grid will receive about 80 percent of their average consumption over the previous six months.
Fertiliser plants will receive about 70 percent supply, while refineries and petrochemical units will absorb a reduction of about 35 percent in order to protect priority sectors.
Domestic LPG Production Increased by 25%
Liquefied Petroleum Gas (LPG) remains one of the key concerns as India imports about 60 percent of its LPG consumption, and nearly 90 percent of these imports normally pass through the Strait of Hormuz.
In response to the current disruptions, the government issued an order on March 8 directing refineries and petrochemical complexes to maximise LPG production by diverting propane, butane, propylene and butenes streams into the LPG supply pool.
As a result of these measures, domestic LPG production has increased by about 25 percent.
Officials said the entire domestic LPG output is now being directed towards household consumers to ensure uninterrupted cooking gas supply.
For non-domestic LPG consumption, priority allocation is being given to essential institutions such as hospitals and educational institutions.
To ensure equitable distribution of LPG supplies to commercial users, a three-member committee comprising Executive Directors from Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) has been constituted. The committee will review allocations to restaurants, hotels and other commercial establishments.
LPG Prices and Consumer Measures
Officials said the current price of a domestic LPG cylinder in Delhi stands at ₹913 following a recent ₹60 increase. However, beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) continue to receive cylinders at a subsidised price of ₹613.
The government explained that for PMUY households, the recent price increase translates to less than 80 paise per day.
Despite a sharp rise of about 41 percent in the Saudi Contract Price since July 2023, the price paid by PMUY beneficiaries has actually declined by about 32 percent during the same period due to government support.
To offset losses incurred by oil marketing companies, the government has approved compensation of ₹30,000 crore for LPG under-recoveries.
Authorities also reported instances of panic booking and hoarding behaviour among consumers following recent developments. However, officials emphasised that the normal LPG delivery cycle remains around 2.5 days and urged consumers not to rush to book cylinders unnecessarily.
To prevent diversion and misuse, the Delivery Authentication Code (DAC) system is being expanded to cover around 90 percent of LPG consumers. Additionally, as a temporary demand-management measure, the minimum gap between LPG bookings has been increased from 21 days to 25 days.
Monitoring of Indian Ships in Persian Gulf
The Ministry of Ports, Shipping and Waterways also briefed the media about maritime developments in the Persian Gulf.
At present, 28 Indian-flagged vessels are operating in the region. Of these, 24 vessels carrying 677 Indian seafarers are located west of the Strait of Hormuz, while four vessels carrying 101 Indian seafarers are operating east of the strait.
Authorities said the safety of these vessels and crew members is under continuous monitoring.
A 24-hour control room has been operational in the Ministry and the Directorate General of Shipping since February 28 to track developments and coordinate assistance when
required.
The Directorate General of Shipping has issued advisories directing Indian vessels and seafarers to adopt enhanced security protocols and comply with reporting requirements, including submission of crew details.
Officials added that ship managers, recruitment agencies and Indian embassies are maintaining close coordination to ensure the safety of Indian seafarers.
Port Operations Remain Stable
Despite the regional uncertainty, port operations across India remain stable. The government has directed all major ports to extend necessary assistance to exporters and ensure continuity of external trade.
Authorities said ports are continuously monitoring vessel movements, assessing real-time developments in the region and reporting cargo and vessel status regularly.
Welfare of One Crore Indian Diaspora
The Ministry of External Affairs highlighted that the safety and welfare of nearly one crore Indians living in Gulf Cooperation Council (GCC) countries remains a top priority.
Prime Minister Narendra Modi has spoken to leaders of several West Asian and Gulf countries, including the United Arab Emirates, Qatar, Saudi Arabia, Oman, Bahrain, Kuwait, Jordan and Israel.
External Affairs Minister S. Jaishankar has also maintained regular contact with his counterparts in these countries, including Iran.
Indian embassies and consulates in the region have been issuing regular advisories and engaging closely with Indian community members.
The government has also established a dedicated control room to assist Indian nationals.
Officials confirmed that two Indian nationals have lost their lives in incidents involving merchant ships that came under attack, while another Indian remains missing.
Condolences were conveyed to the families.
Condolences were conveyed to the families.
Some injured Indian nationals are receiving medical treatment, and Indian missions are providing assistance. One Indian injured in Israel is recovering well, while another injured in Dubai remains in contact with the Indian consulate.
Approximately 9,000 Indian nationals are currently in Iran. Indian students and pilgrims have been relocated to safer cities outside Tehran.
Authorities are also facilitating land border crossings into Armenia and Azerbaijan for those wishing to return to India via commercial flights.
States Asked to Prevent Hoarding
The Ministry of Information and Broadcasting said the Union Home Secretary has already held a meeting with Chief Secretaries and Directors General of Police of all states and Union Territories to review preparedness.
States and UTs have been directed to take strict action against black marketing and hoarding of essential commodities and ensure uninterrupted availability of supplies.
They have also been asked to appoint state-level spokespersons to provide regular and credible information to the public.
Officials stressed that verified updates should be disseminated through official government channels, district administrations and media outlets to counter misinformation.
Government Monitoring Situation Closely
Concluding the briefing, officials emphasised that the Government of India is closely monitoring the evolving situation in West Asia through coordinated efforts among multiple
ministries and agencies.
ministries and agencies.
They reiterated that necessary measures are being taken to ensure energy security, protect Indian citizens abroad, safeguard maritime trade and maintain the uninterrupted supply of essential commodities across the country.
