Strategic Resilience of India’s Energy Sector: Oil Reserves Hold Firm Amid Hormuz Strait Tensions

India has affirmed that its crude oil and fuel reserves remain robust amid escalating tensions in the Strait of Hormuz, linked to the ongoing Iran-Israel conflict. Government sources, cited by ANI, emphasise that the nation is in a "comfortable position" with ample stocks of crude oil, refined products, and liquefied petroleum gas (LPG).
This assurance comes as global markets watch closely for potential supply disruptions in the vital Gulf shipping lane.
As the conflict between Iran and Israel threatens to disrupt maritime traffic through the Strait of Hormuz, a critical artery for global energy trade, authorities in New Delhi have confirmed that current inventories are sufficient to withstand potential supply shocks.
Sources within the government have described India’s present standing as a "comfortable position," noting that the country now possesses a more diverse array of energy sources than those currently at risk in the Gulf region.
Refiners across the country are reported to have maintained substantial inventories, and the state remains vigilant in monitoring global developments to ensure that fuel availability for the domestic market remains entirely uninterrupted.
To mitigate the risks associated with the Strait of Hormuz, officials have indicated a readiness to pivot toward alternative geographical supply routes.
By ramping up procurement from other regions, the government aims to compensate for any potential volume deficits. This proactive strategy is designed to decouple India’s energy stability from the immediate volatility of West Asian geopolitics.
A significant component of this resilience is the strategic shift in India’s import profile over the last few years. Recent data reveals a dramatic increase in the procurement of Russian crude oil, which currently accounts for approximately 20 per cent of India’s total imports, compared to a negligible 0.2 per cent in early 2022. Government sources emphasised that Indian refiners have strictly adhered to international guidelines by purchasing only Russian crude that does not fall under current sanctions.
The focus on energy security extends to liquefied natural gas (LNG), with state-owned enterprises actively securing spot cargoes to bolster national reserves. Furthermore, the government has moved to dispel recent rumours regarding the operational status of the Mangalore Refinery and Petrochemicals Ltd (MRPL). Officials clarified that the refinery is fully operational and possesses more than adequate stock levels to meet ongoing demand.
In the domestic sector, the government has issued directives to all liquefied petroleum gas (LPG) refineries to maximise their production output.
This move is intended to ensure that household fuel supplies remain steady. In an additional effort to ease consumption pressures, authorities have indicated that petrochemical resources may be redirected for domestic use if the situation warrants such intervention.
Diversification efforts for LPG have also expanded beyond traditional suppliers. Following a significant agreement signed in late 2025, Indian public sector oil firms have begun receiving large-scale shipments from the United States Gulf Coast.
This contract, which covers the import of approximately 2.2 million tonnes per annum, marks a milestone in India’s effort to broaden its energy partnership base and reduce its historical over-reliance on Middle Eastern supply chains.
Agencies
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