Amid tensions disrupting the Strait of Hormuz, government sources say India has ample crude oil, LPG and fuel stocks, plans to ramp up imports from other regions, and is increasing Russian oil purchases to secure supply.
India remains in a “comfortable position” regarding crude oil, oil products and LPG supplies despite disruptions in the Strait of Hormuz, government sources told ANI on Friday, stressing that the country has sufficient stocks and is actively diversifying supply routes. The reassurance comes amid escalating tensions in West Asia that have raised fears of disruptions in global energy supplies.
India Has Adequate Oil and LPG Stocks
According to government sources, India currently has enough crude oil, oil products and LPG reserves to meet domestic demand even as shipping through the Strait of Hormuz faces uncertainty.
“Today, we have more energy sources than what is stuck in the Straits of Hormuz. We are in a comfortable position in Crude oil, Oil products and LPG. In terms of our current stock, we are in a comfortable position. We are going to ramp up our supplies from other parts of the geographies and make up for our supply crunch from the Straits of Hormuz.”
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Officials said the government is already planning to increase purchases from alternative regions to offset any potential supply gaps caused by disruptions in the Gulf.
India currently has crude inventories sufficient to cover roughly 25 days of demand, providing a buffer while refiners adjust supply chains.
Russian Oil Emerging as a Key Alternative
Government sources highlighted the growing role of Russian crude in India’s energy mix since the start of the Ukraine war in 2022.
“We have been buying crude oil from Russia since 2022. In 2022, we were importing 0.2 per cent of total imports from Russia. In February, we imported 20 per cent of our total crude oil imports from Russia. In February, India imported 1.04 mn barrel per day from Russia.”
India had sharply increased purchases of discounted Russian crude following Western sanctions on Moscow. However, imports had dipped in recent months after pressure from the United States.
Now, with uncertainty in Middle Eastern supply routes, Indian refiners have begun buying cargoes of Russian crude currently stranded at sea.
More than a dozen tankers carrying Russian oil are presently in the Arabian Sea and the Bay of Bengal, while several others are waiting near Singapore and along Mediterranean shipping routes.
A temporary 30-day waiver issued by the United States Treasury has allowed Indian refiners to purchase Russian oil cargoes that were already at sea.
Refineries Well Stocked, No Shutdown at MRPL
Government sources also dismissed speculation about a shutdown at the Mangalore Refinery and Petrochemicals Limited.
“News of the MRPL refinery shutdown is incorrect. MRPL Refinery is very well stocked, have adequate stock.”
Officials said the refinery continues to operate normally and has sufficient crude supplies.
LPG Production Being Increased
To ensure domestic cooking gas availability, the government has directed refineries to ramp up LPG production.
“All the LPG refineries are directed to increase production of LPG. We are in a comfortable position with our LPG stock. We will use our Petchem for domestic use to ease the consumption demand.”
The move aims to stabilise supply as demand for cooking gas continues to grow across India.
US LPG Supplies Begin Flowing
Government sources said India has also begun receiving LPG imports from the United States.
“LPG from the US has started coming to India since January. Indian PSU Oil companies in November 2025 have signed a one-year contract to import around 2.2 MTPA of LPG from the US Gulf Coast for the contract year 2026.”
The deal is expected to diversify India’s LPG supply chain and reduce reliance on traditional Middle Eastern suppliers.
Oil Prices Dip Slightly
Meanwhile, crude prices saw a marginal dip in domestic futures trading on Friday.
On the Multi Commodity Exchange of India, crude oil futures for April delivery slipped Rs 28, or 0.39 per cent, to Rs 7,189 per barrel, with a trading turnover of 1,514 lots.
Globally, West Texas Intermediate was trading 1.33 per cent lower at USD 79.93 per barrel, while Brent Crude fell 1.12 per cent to USD 84.45 per barrel.
Analysts attributed the dip to profit booking by traders amid weak demand signals in the spot market.
Balancing Russian and Global Supplies
Energy analysts note that while Russian oil can help India manage short-term supply risks, it cannot fully replace Middle Eastern imports.
Nearly 40–50 per cent of India’s crude imports typically pass through the Strait of Hormuz, making the country vulnerable to disruptions in the region.
However, officials say the government’s strategy of diversifying suppliers, boosting LPG production and maintaining healthy reserves is designed to cushion the domestic market from global shocks.
For now, government sources maintain that India’s energy security remains intact.
