The Centre has begun scouting global markets for alternative sources of crude oil, liquefied petroleum gas (LPG) and liquefied natural gas (LNG) to safeguard energy security amid rising geopolitical uncertainties.
Officials in the Petroleum Ministry said India is actively engaging with suppliers across Africa, the Americas and Southeast Asia to diversify procurement and cushion potential supply disruptions. The move comes as volatility in key shipping corridors and producing regions raises concerns over price spikes and shipment delays.
India imports over 85% of its crude oil requirement, making supply diversification a strategic priority. State-run refiners are understood to be evaluating spot purchases and medium-term contracts to ensure uninterrupted feedstock availability. LPG marketers are also reviewing sourcing strategies ahead of seasonal demand fluctuations.
For LNG, buyers are exploring both long-term contracts and spot cargoes to manage exposure to global price swings. Industry executives noted that tighter shipping capacity and higher insurance premiums in sensitive maritime zones have added to procurement complexities.
Energy analysts said expanding the supplier base not only enhances supply resilience but also strengthens India’s bargaining position in price negotiations. However, they cautioned that global competition for cargoes may intensify if geopolitical tensions persist.
The government reiterated that domestic fuel availability remains stable and that contingency plans are in place to manage any external shocks. Authorities are closely monitoring international benchmarks and freight movements to ensure that India’s energy supply chain remains secure and cost-effective.
