How India is Securing Its Energy Supplies Amid Global Tensions

India's Energy Resilience Amid Global Crises

New Delhi: As the third-largest oil importer and fourth-largest gas buyer globally, India has sufficient energy reserves to last several weeks, according to Oil Minister Hardeep Singh Puri. This assurance comes amid rising tensions in key energy supply regions worldwide.

In a recent update on X, the minister noted that the government has been vigilantly observing the changing geopolitical landscape in the Middle East over the last fortnight.

Puri emphasized that under Prime Minister Narendra Modi's leadership, India has successfully diversified its energy sources, significantly reducing reliance on the Strait of Hormuz for oil imports.

The Strait of Hormuz is a crucial passage for oil from the Middle East, and Iran has threatened to close it following U.S. military actions against its nuclear sites.

Currently, approximately 2 million barrels per day (bpd) of India's total crude oil imports of 5.5 million bpd pass through this narrow channel. However, India has established alternative supply routes from countries like Russia, the U.S., and Brazil to mitigate any potential disruptions.

Russian oil, for instance, is transported via the Suez Canal, Cape of Good Hope, or the Pacific Ocean, bypassing the Strait of Hormuz entirely.

Additionally, while U.S., West African, and Latin American oil supplies may be more expensive, they are increasingly becoming viable alternatives.

Puri reassured that India's Oil Marketing Companies have enough supplies for several weeks and are continuously receiving energy from multiple channels. He affirmed that all necessary measures will be taken to maintain fuel supply stability for citizens.

Following Israel's military actions against Iran, global oil prices surged to their highest levels since January, with Brent crude prices rising over 10% to reach USD 77 per barrel.

India relies on imports for over 85% of its crude oil and about half of its natural gas, with more than 40% of oil and half of gas imports sourced from the Middle East.

Despite the recent price increase, oil costs remain over 10% lower than last year's figures and are significantly below the USD 100 per barrel mark seen in early 2022 after Russia's invasion of Ukraine.

Russia stands as India's largest crude oil supplier, with the refined products being utilized for fuels such as petrol and diesel. Meanwhile, Qatar is the primary supplier of natural gas, which is essential for fertilizer production, electricity generation, and domestic cooking.