NEW DELHI: As military conflict escalates between Israel and Iran, Union minister Hardeep Singh Puri on Sunday assured citizens that India’s fuel supplies remain secure despite growing volatility in the Middle East.
“We have diversified our supplies in the past few years, and a large volume of our energy no longer passes through the Strait of Hormuz,” Puri posted on X, adding that Oil Marketing Companies have “supplies for several weeks” and continue to receive fuel from multiple routes.
His comments come as India dramatically increased Russian oil imports in June, buying more crude from Moscow than from all Middle Eastern suppliers combined. According to preliminary data from Kpler, Indian refiners are set to import 2 to 2.2 million barrels per day (bpd) from Russia, up from 1.96 million bpd in May.
In comparison, total imports from traditional Gulf partners like Iraq, Saudi Arabia, the UAE, and Kuwait are projected to be slightly lower at around 2 million bpd.
US strikes add to region’s instabilityThe latest geopolitical instability stems from a direct US military intervention in Iran. Yesterday, American forces bombed three Iranian nuclear sites, joining Israel’s June 13 attacks on Iran’s nuclear infrastructure. Tehran has responded with strong warnings, including threats to close the Strait of Hormuz, a vital global chokepoint through which 40% of India’s oil and 50% of its gas transits.
Analysts believe a full closure is unlikely. “Iran would risk hurting allies like China and Gulf neighbours, as well as provoke military retaliation,” said Sumit Ritolia of Kpler. “At most, isolated disruptions could occur for 24–48 hours.”
India’s energy strategy pivotsIndia’s import strategy has shifted significantly since Russia’s invasion of Ukraine in 2022. Russian oil now makes up about 40-44% of India’s crude basket, compared to under 1% before the war. US oil imports have also jumped, from 280,000 bpd in May to 439,000 bpd in June.
Ritolia says India is now better prepared for supply shocks. “Russian barrels come via routes detached from Hormuz. India is also sourcing more from the US, West Africa, and Latin America,” he noted.
In the event of disruption, India may dip into its strategic reserves, which can cover around 9–10 days of imports.
For now, Puri reiterated the government’s commitment: “We will take all necessary steps to ensure the stability of fuel supplies for our citizens.”
Stay informed with the latest business news, updates on bank holidays and public holidays.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less
Start a Conversation
Post comment