India taps alternative crude supplies as West Asia war rages

Indian refiners have begun negotiating for additional crude oil that does not transit through the vital Strait of Hormuz, with supplies being sourced from the US, Russia and West Africa.

The diversification is aimed at ensuring adequate supplies in case the conflict in West Asia drags on for a longer period.

Minister for Petroleum and Natural Gas Hardeep Singh Puri, in a post on social media platform X in the early hours of Sunday, said: “Energy imports into the country are in full flow from all non-Hormuz routes. The energy requirements of our citizens are being fully met.”

“India is in a comfortable position. There is no room for anxiety or speculation in this regard,” Puri added.

India imports about 88 per cent of its crude oil requirement, with roughly 40 per cent of those supplies in February having transited through the Strait of Hormuz, a narrow 33-km sea lane between Iran and Oman that serves as a key global energy transit route.

Military strikes by the US and Israel on Iran, and Tehran’s retaliatory attacks on US bases in neighbouring countries as well as Israel, have raised fears and led to a near halt in movement through the strategic waterway.

India’s ‘non-Hormuz’ imports accounted for about 60 per cent of supplies in 2025. However, after the conflict in West Asia escalated, the share has climbed to about 70 per cent.

The US Treasury Department has issued a 30-day waiver allowing the sale and delivery of sanctioned Russian oil already loaded on vessels to India, opening up another supply avenue. The exemption remains valid until April 5.

Sources said India had never stopped buying Russian oil and imported about 1.04 million barrels per day of Russian crude in February. International assessments suggest that about 120 million barrels of Russian crude are currently at sea. Of this, around 15 million barrels are close to India, while another 7 million barrels are near Singapore.

Before the US imposed sanctions on Russia’s leading oil producers Rosneft and Lukoil in October 2025, Reliance Industries was the largest buyer of Russian crude, importing more than 5,00,000 barrels per day under a long-term supply agreement with Rosneft.

India currently holds approximately 144 million barrels of crude in onshore storage, equivalent to around 30 days of coverage at 2025 import levels. Importantly, the supplies are being constantly replenished, a source said.

India’s strategic petroleum reserves have the capacity to cover about 9.5 days of net oil imports. In addition, state-run oil companies have storage for crude and petroleum products equivalent to 64.5 days of net imports, taking the country’s total storage capacity to roughly 74 days of net imports, according to petroleum ministry data.