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As the Middle East struggle continues to escalate, India is rerouting its crude proviso chains to unafraid uninterrupted substance imports. Indian refiners are securing further crude lipid from the United States, Russia, and West Africa to support capable supplies if the Middle East struggle stretches connected for long, manufacture officials and analysts said.
Refineries that person crude into petrol, diesel and different fuels, person enactment their planned attraction connected a clasp and are operating astatine mean processing rates, gathering reserves to conscionable short-term request to guarantee home substance needs are met. India's lipid handbasket relies connected imports for astir 88% of its crude, with astir fractional of February’s supplies passing done the Strait of Hormuz, a constrictive but captious oversea way betwixt Iran and Oman.
The caller subject strikes by the US and Israel connected Iran, coupled with Tehran’s retaliatory attacks connected US bases successful neighbouring countries and Israel, person sharply raised determination tensions, efficaciously halting tanker question done the strategical strait. “Non-strait sources are afloat operational and we are sourcing much and much supplies from non-conflict zones,” a elder lipid ministry authoritative said. adding that non-Strait sources, which accounted for 60% of supplies past year, climbed to 70% aft the Middle East conflict.
Diversifying lipid handbasket - Russia, West Africa and more
Indian refiners are progressively sourcing crude from West Africa, Latin America, and the US. The US Treasury precocious issued a 30-day waiver allowing transportation of sanctioned Russian crude already loaded onto vessels bound for India. The waiver, valid until April 5, permits the sale, delivery, oregon discharge of Russian-origin crude loaded connected oregon earlier 5 March, including vessels nether definite sanctions.Inflows from Russia Industry sources said 120 cardinal barrels of Russian crude are presently connected the water, with 15 cardinal barrels adjacent India successful the Arabian Sea and Bay of Bengal, and different 7 cardinal barrels adjacent Singapore.
Reliance Industries, Hindustan Petroleum Corporation Ltd, and HPCL-Mittal Energy Ltd person resumed purchases of Russian crude aft halting imports pursuing US sanctions connected large producers Rosneft and Lukoil past year. Before sanctions were imposed successful October 2025, Reliance Industries was the largest Russian crude buyer, importing much than 500,000 barrels per time nether a semipermanent statement with Rosneft.
The Oil ministry authoritative noted that India ne'er afloat stopped importing Russian crude, bringing successful astir 1.04 cardinal barrels per time successful February 2026, down from 1.6–1.8 cardinal bpd successful 2023–2025. “We are successful a precise comfy presumption arsenic acold arsenic crude and finished products are concerned,” helium said, adding that India’s combined inventory tin conscionable request for 50 days. Onshore retention presently holds astir 144 cardinal barrels, capable for astir 30 days astatine 2025 import levels, and supplies are perpetually replenished. India’s Strategic Petroleum Reserves supply astir 9.5 days of nett import coverage, portion state-run companies clasp crude and merchandise stocks covering 64.5 days. Together, full retention capableness equates to astir 74 days of nett imports. While India is physically capable to unafraid crude from alternate sources, analysts warned that costs could emergence owed to higher prices, longer shipping routes, accrued freight, and elevated security premiums.
International crude prices surged supra $92 per barrel, up from astir $70, aft the US and Israel struck Iran connected 28 February. LNG prices person much than doubled, reaching $24–25 per cardinal British thermal units.
India's import bill Higher import costs could widen India’s fiscal shortage oregon construe into terms increases for consumers. Every $10 emergence successful crude prices whitethorn adhd 20–25 ground points to the user terms scale if passed on, analysts said. India, the world’s third-largest crude importer, depends connected the Middle East for astir fractional of its imports. In February 2026, India received 2.8 cardinal bpd from Iraq, Saudi Arabia, the UAE, Kuwait, and Qatar, accounting for 53% of full imports, portion planetary flows done the Strait of Hormuz were astir 15 cardinal bpd of crude and 5 cardinal bpd of lipid products successful 2025. Exposure to the Hormuz way was astir 41 per cent successful 2025 but has risen precocious arsenic Indian refiners reduced Russian crude purchases. Imports from Russia averaged 1.15 cardinal bpd successful the archetypal 2 months of 2026, compared with astir 1.7 cardinal bpd successful 2025.
