Indian refiners have begun negotiations for extra shipments of crude oil from the US, Russia and West Africa to make sure enough provides in case the battle in West Asia drags on, business officers and analysts stated.
Refineries that convert crude oil into fuels comparable to gasoline and diesel are suspending deliberate upkeep outages and sustaining regular processing charges to create a buffer that might probably meet nationwide necessities within the brief time period, they stated.
India imports about 88% of its crude oil wants, and about half of February’s provide handed by means of the Strait of Hormuz. The Strait of Hormuz is a slim sea lane between Iran and Oman that serves as an essential vitality transport route for international markets.
Current army assaults on Iran by the US and Israel, and Tehran’s retaliatory assaults on American army bases not solely in Israel but additionally in neighboring nations, have sharply elevated tensions within the area, and tanker actions by means of the strategic waterway have all however come to a halt.
“Different sources of provide outdoors the Strait are totally operational, and increasingly sources are coming from non-conflict zones,” a senior oil ministry official stated. “In 2025, non-strait sources accounted for 60% of provide, rising to 70% after the Center East battle.”
He stated Indian refiners faucet crude oil from West Africa, Latin America and the US, including that one other avenue was opened after the US Treasury Division issued a 30-day waiver permitting the sale and supply of sanctioned Russian crude already on board ships to India.
The exemption permits the sale, supply and unloading of Russian-origin crude oil and petroleum merchandise loaded on vessels earlier than March 5, together with sure sanctioned vessels. This exemption is legitimate till April 5, permitting cargo already in transit to be accomplished with out violating sanctions restrictions.
There are 120 million barrels of Russian crude oil at sea. Of this, 15 million barrels of Russian crude oil is anchored in tankers within the Arabian Sea and the Bay of Bengal close to India, and an extra 7 million barrels of Russian crude oil are anchored close to Singapore.
Indian refiners have began shopping for Russian crude, business sources stated.
Reliance Industries, Hindustan Petroleum Company and HPCLMittal Power, which had stopped shopping for Russian crude final yr following sanctions imposed by the US on Moscow’s main producers Rosneft and Lukoil, have returned to the market to safe Russian cargo, they stated.
Earlier than the US imposed sanctions on main Russian oil producers Rosneft and Lukoil in October 2025, Reliance Industries was the biggest purchaser of Russian crude oil, importing greater than 500,000 barrels per day (bpd) below a long-term provide contract with Rosneft.
Petroleum Ministry officers stated India by no means stopped shopping for Russian crude and imported about 1.04 million barrels per day of Russian crude in February, down from 2023-25 ranges of 1.6 million to 1.8 million barrels per day.
“So far as crude oil and completed merchandise are involved, we’re in a really comfy place,” he stated, including that the mixed stock might meet the nation’s demand for 50 days.
The nation presently has about 144 million barrels of crude oil saved on land, which is equal to about 30 days’ value of crude oil at 2025 import ranges.
The essential factor is that provides are consistently being replenished.
India’s Strategic Petroleum Reserve has the capability to cowl roughly 9.5 days of internet oil imports. As well as, in keeping with information from the Ministry of Petroleum, state oil corporations retailer crude oil and petroleum merchandise equal to 64.5 days of internet imports, making the nation’s complete storage capability roughly 74 days of internet imports.
Whereas India might be able to safe enough bodily crude oil by means of various sources, analysts warned that greater oil costs, greater freight and insurance coverage premiums, and longer transport routes might worsen its total value construction.
Worldwide oil costs have jumped to greater than 92 kilos per barrel, up from round 70 kilos when the US and Israel attacked Iran on February 28. Liquefied pure fuel (LNG) costs have greater than doubled to between £24 and £25 per million British thermal items.
Analysts stated the worth hike would improve India’s import invoice, including that sourcing from suppliers outdoors the Center East might take longer to move and result in greater freight prices. Insurance coverage premiums have additionally elevated.
Each ₹10 improve in oil costs can improve the buyer value index by 20-25 foundation factors if handed on to customers and widen the fiscal deficit if tax cuts are taken to offset the affect.
The speedy affect might be greater import payments, widening present account deficit and stress on the rupee.
India, the world’s third-largest oil importer, depends on provides from West Asia for about half of its imports, and the digital halt to tanker site visitors within the Strait of Hormuz has put extreme stress on provides. In February 2026, India obtained 2.8 million barrels of crude oil per day from Iraq, Saudi Arabia, the United Arab Emirates, Kuwait, and Qatar, accounting for 53% of its complete imports.
Globally, roughly 15 million barrels per day and 5 million barrels per day of petroleum merchandise handed by means of the Strait of Hormuz in 2025.
India’s publicity to crude oil flows by means of the Strait of Hormuz was low at about 41% in 2025, however has elevated in current months as refiners reduce on purchases of Russian crude. Imports from Russia averaged about 1.15 million barrels per day within the first two months of 2026, in comparison with about 1.7 million barrels per day in 2025.
issued – March 8, 2026 9:19pm IST
