The conflict in West Asia poses no immediate threat to India’s energy security, according to people familiar with the matter, who cited what they said were stockpiles of crude oil and fuel for 25 days each, as the government sought to allay observers’ concerns after repeated escalations in hostilities in the Gulf – a region from which nearly half of India’s crude oil imports come.
Petroleum Minister Hardeep Singh Puri said India has adequate energy reserves to deal with the ongoing situation and consumers of petrol, diesel and cooking gas will not immediately face any shortage.
India imports a little more than five million barrels of crude oil per day, of which approximately 2.5 million barrels per day transit the Strait of Hormuz, the 33-kilometre-long corridor between Iran and Oman through which shipping almost stopped after Iranian retaliatory strikes on the Gulf. Qatar, one of the main suppliers of liquefied natural gas, temporarily suspended production on Monday.
The ministry said it has established a 24/7 control room to monitor supply and inventory conditions across the country. “At the moment, the government feels reasonably comfortable regarding stocks,” she said in a statement, adding that she was “cautiously optimistic that phased measures can be taken, if necessary, to further ease the situation.”
India has 25 days of crude oil and 25 days of fuel stocks, as well as stocks of strategic petroleum reserves – and has diversified from more than 40 countries, reducing dependence on Hormuz supplies to 40%, people with direct knowledge of the matter said.
More than 60% of India’s energy needs are now met by producers in North America, Latin America, West Africa and the Asian part of Russia, they said, adding that shipments not routed through the strait will remain available to mitigate any temporary disruption.
Regarding natural gas, India also has a stock of cooking gas sufficient for three weeks. New Delhi is in contact with producers including Canada and Norway to obtain additional supplies of liquefied natural gas, as the Iranian attack has disrupted the production capacity of Qatar, one of India’s main suppliers. “Besides Qatar, India has large, long-term supply contracts for LNG from the US, Australia and Russia,” one of the people said.
The government pointed out that only 50% of India’s natural gas needs are met through imports, and that domestic gas production is sufficient to meet emergency cooking gas requirements.
The person cited above said that the conflict is not seen as one that will continue. He added: “The war is unlikely to last for a long time, and we do not expect any threat to the country’s energy security immediately.” People estimate that the situation may improve in the next two weeks.
The impact of the conflict on supplies is no longer merely logistical after the developments that occurred this week. Iraq has reduced production at its giant Rumaila oil field, while tightening storage due to export disruptions in Hormuz, Bloomberg reported. Saudi Aramco halted operations at its Ras Tanura refinery after a drone strike on Monday, while debris from an intercepted drone caused a major fire at the UAE oil trading hub in Fujairah, Bloomberg reported. This facility is unique because it opens onto the Gulf of Oman, and ships can reach it from the Indian Ocean without having to sail through the Strait of Hormuz.
Kpler, which tracks global energy flows, estimates India’s combined commercial reserves – including strategic reserves and floating cargo already at sea – at about 100 million barrels, or 40 to 45 days of import cover.
Besides crude oil and product stocks held at refineries, pipelines and warehouses, the state-run Strategic Petroleum Reserves of India operates three underground storage facilities with a combined capacity of 5.33 million tons.
Two planned expansions – at Chandikul in Odisha (4 million tons) and an additional facility at Badur in Karnataka (2.5 million tons), announced in 2021 – remain incomplete.
Saudi Arabia, for its part, is exploring the option of routing more barrels through the Red Sea — but that passage carries its own risks. Bloomberg reports that Yemen’s Iran-backed Houthi movement has threatened to resume attacks on ships sailing through the waterway, leaving no disruption-free alternative corridor for Gulf energy exports.
Regarding prices, people familiar with the matter acknowledged that rising crude oil costs – not its availability – are the most pressing near-term concern. Global benchmark Brent crude jumped as much as 18 percent in just two days, exceeding $85 a barrel for the first time since July 2024 on Tuesday, before retreating slightly after an International Energy Agency document showed the agency was ready to help stabilize the global oil market.
The Indian basket price – calculated as a ratio of high-quality crude and Brent that reflects a refinery’s actual consumption – stood at $80.16 per barrel as of March 2, the highest level in the current fiscal year, according to government data released by the Petroleum Planning and Analysis Cell. The basket had fallen to $62.20 in December 2025, and an average of $69 in February.
If the disruption extends beyond the two-week period people estimate, India’s options will take on a new dimension. Indian refiners have reduced their purchases of Russian oil in recent months to avoid punitive tariffs and facilitate a temporary trade deal with Washington – an agreement that is now in limbo after the US Supreme Court struck down President Donald Trump’s tariffs.
Kpler noted that Russian cargoes currently floating in the Arabian Sea with no identified buyers could be absorbed relatively quickly if necessary.
