India's long-term energy strategy averted fuel crisis during Hormuz conflict: Former IOCL Chairman
New Delhi, June 30
India's ability to quickly diversify crude oil imports and avoid a major fuel crisis during the recent Strait of Hormuz conflict was the outcome of years of strategic infrastructure development and global energy partnerships, not an overnight response, former Indian Oil Corporation Limited Chairman B. Ashok said on Tuesday.
Speaking to IANS, Ashok said India's ability to diversify crude oil supplies at short notice reflected years of strategic planning that strengthened the country's energy security.
"This rapid adjustment was not an overnight reaction; it was the result of infrastructure and relationships built over a substantial period," Ashok said.
He noted that before the conflict, around 45 per cent of India's crude oil imports passed through the Strait of Hormuz, while the remaining 55 per cent came from other regions. Within weeks of the disruption, India increased the share of crude sourced from outside the Strait to 70 per cent, significantly reducing its exposure to the conflict zone.
Ashok said India has steadily expanded its supplier base over the past decade, importing crude oil from 41 countries in 2026 compared to 27 countries around ten years ago.
"Building such diversification required sustained diplomatic engagement, commercial partnerships and the ability to operate across different legal and regulatory environments," he told IANS.
He explained that refinery modernisation also played a crucial role. Unlike older refineries that were designed to process crude from a single source, modern Indian refineries have been upgraded to handle multiple grades of crude oil with varying API gravity and sulphur content, providing greater operational flexibility during supply disruptions.
Ashok added that logistics preparedness was another key factor. Indian ports and supply chains have been strengthened to handle different classes of crude carriers, including Very Large Crude Carriers, while managing significantly different shipping durations ranging from about five days from the Middle East to nearly a month from the Americas.
"The industry has built critical reliability mechanisms over time to manage these logistical shifts, enabling India to tackle the crisis effectively," he said.
Ashok also credited long-term investments in refining capacity and energy infrastructure for ensuring that India maintained uninterrupted fuel supplies despite global geopolitical tensions, demonstrating the value of sustained planning in safeguarding the country's energy security.
— IANS
Reader Comments
Finally some good news about energy security! I remember during the 2019 tensions we were all worried about petrol prices. Now with refineries upgraded and ports handling VLCCs, we're much more resilient. But hope we also invest more in renewables - that's the real long-term solution.
Interesting perspective from a former IOCL chief. The shift from 45% to 30% dependence on Hormuz in just weeks is impressive. But I wonder how much this cost - diversifying to suppliers from Americas must have increased shipping costs significantly. Not everything is about capacity, economics matters too.
As someone who works in oil and gas, I can confirm this is no small feat. Building relationships with 41 different countries, each with their own legal and regulatory systems, takes years of diplomacy and commercial negotiation. Kudos to our strategic planners and diplomats!
This is all good, but what about the common man? Petrol prices still cross ₹100 in many states. Diversification is great for national security, but we need to see benefits at the pump too. More competition and lower taxes would help more than just strategic planning.
Very impressive that Indian refineries can now handle multiple crude grades. In the US we've had this flexibility for decades, but seeing India upgrade so quickly is remarkable. The 5-day to 30-day shipping range adaptability shows world-class logistics planning.
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