India’s crude oil imports remain largely insulated from the latest geopolitical tensions surrounding the Strait of Hormuz, thanks to the country’s diversified sourcing strategy, although prolonged instability in the region could disrupt LPG and LNG supplies while increasing freight costs, according to energy analytics firm Kpler.
Renewed exchanges of fire in the Gulf region, following comments by US President Donald Trump regarding a ceasefire, have once again raised concerns over the security of the Strait of Hormuz—one of the world’s most critical maritime energy corridors through which nearly a fifth of global oil trade passes.
Despite the heightened tensions, India’s crude oil supply chain has remained stable, with refiners effectively managing procurement through a broad import portfolio, said Sumit Ritolia, Lead Research Analyst for Refining and Oil Markets at Kpler.
“Crude flows through the Strait had not fully recovered before the latest escalation. For India, however, it has largely been business as usual over the past 100 days, with refiners successfully managing supply through a diversified import portfolio,” Ritolia noted.
Russia continues to be India’s largest crude oil supplier, while additional volumes from Saudi Arabia and the United Arab Emirates—supported by alternative export infrastructure that bypasses the Strait—have further strengthened the country’s energy security. Imports from West Africa and Latin America have also played an increasingly important role in diversifying refinery feedstock.
India’s crude oil imports climbed to a record 4.93 million barrels per day (bpd) in June, driven by a significant increase in purchases from Russia as refiners sought to secure supplies amid continued uncertainty around the Strait of Hormuz.
While crude oil availability remains well protected, analysts caution that a prolonged disruption in the region could have a greater impact on liquefied petroleum gas (LPG) and liquefied natural gas (LNG) shipments, both of which rely heavily on Gulf exports. Any sustained instability could also push up tanker freight rates, marine insurance premiums, and overall logistics costs for energy imports.
India’s diversified crude sourcing strategy, developed over the past few years, has significantly reduced its dependence on any single supplier or shipping route, enhancing the resilience of the country’s energy supply chain against geopolitical disruptions.