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India Confident on Oil, LPG Supply Despite Hormuz Strait Tensions

Government sources state India is in a very comfortable position for crude oil, petroleum products, and LPG supplies despite concerns over potential disruptions in the Strait of Hormuz. The country has diversified its import sources and holds adequate existing stocks to meet domestic demand. Notably, Russia accounted for about 20% of India's crude imports in February, and LPG imports from the US have commenced. Authorities are also planning to utilize petrochemical output to ease energy sector demand pressures.

Key Points: India's Comfortable Oil, LPG Position Amid Hormuz Concerns

  • Diversified crude import sources
  • Adequate existing oil & product stocks
  • Increased LPG production ordered
  • 20% of Feb crude imports from Russia
  • MRPL refinery fully operational
2 min read

India in "very comfortable position" on Oil, LPG supplies despite Hormuz concerns: Govt sources

Govt sources say India has diversified energy supplies and adequate stocks to offset potential disruptions from the Strait of Hormuz.

"very comfortable position - Government sources"

New Delhi, March 6

India is in a "very comfortable position" regarding crude oil, petroleum products and LPG supplies despite concerns over disruptions through the Strait of Hormuz, government sources said on Friday.

According to the sources, the country currently has access to more energy supplies from diversified sources than the volume that could potentially be impacted through the Strait of Hormuz. India's existing stock of crude oil and petroleum products is also adequate to meet domestic demand.

Sources said the government is closely monitoring the situation and plans to ramp up supplies from alternative geographies to offset any potential supply constraints linked to the Strait of Hormuz.

They highlighted that India has significantly diversified its crude import basket over the past few years. Since 2022, India has been importing crude oil from Russia. While Russia accounted for only 0.2 per cent of India's total crude imports in 2022, the share has risen substantially in the following years.

"In February, India imported about 20 per cent of its total crude oil imports from Russia, amounting to around 1.04 million barrels per day," government sources said.

Meanwhile, reports suggesting a shutdown of the Mangalore Refinery and Petrochemicals Limited (MRPL) refinery are incorrect, sources clarified.

"MRPL refinery is fully operational and well stocked with adequate crude supplies," they said.

On the LPG front, the government has directed all LPG refineries to increase production to ensure adequate availability across the country. Officials said India currently remains in a comfortable position regarding LPG stocks.

LPG from US has started coming to India since January, the sources said. Indian PSU Oil companies in November 2025 has signed a one-year contract to import around 2.2 MTPA of LPG from the US Gulf Coast for the contract year 2026.

Additionally, authorities are planning to utilize petrochemical output for domestic consumption to help ease demand pressures in the energy sector, it added.

- ANI

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Reader Comments

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Priya S
Comfortable position is good to hear, but what about the prices? My LPG cylinder cost has almost doubled in the last few years. Adequate supply doesn't mean affordable supply for the common family. Hope this stability translates to lower prices soon. 🙏
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Arjun K
The data on Russian imports is interesting – from 0.2% to 20% is a huge shift. It shows how India is pragmatically navigating global politics to secure its energy needs. Jai Hind! 🇮🇳
S
Sarah B
As someone who follows energy markets, this is a solid proactive stance. Sourcing from the US Gulf and ramping up domestic refinery output are good steps. The key will be maintaining this diversification long-term.
M
Meera T
Glad to hear MRPL is operational and well-stocked. There were rumours in my town in Karnataka about shortages, causing unnecessary panic. The government should communicate these clarifications more actively to the public.
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Karthik V
While the position seems comfortable, we must not become complacent. The Strait of Hormuz is a critical chokepoint. We need to accelerate our strategic petroleum reserves and invest more in renewable energy to reduce this dependency over time.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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