New Delhi – India's Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, on Thursday, March 12, 2026, firmly assured the nation that the country's fuel supplies remain secure despite ongoing tensions in the Middle East. Speaking in the Lok Sabha, the lower house of India's parliament, Puri urged the public to avoid "rumour-mongering or fake narratives" during this period of global energy disruption. He stressed that India has robust mechanisms in place to ensure an uninterrupted supply of petrol, diesel, and other essential fuels.
Dispelling Panic Amidst Global Turmoil
The minister's statement came as concerns mounted over the impact of the Middle East conflict, particularly after the Strait of Hormuz, a critical waterway for global oil shipments, was reported to be effectively closed for commercial shipping for the first time in modern history. Before the current crisis, approximately 45 percent of India's crude oil imports transited through this narrow channel between Iran and Oman. Puri acknowledged the unprecedented nature of the global energy landscape, stating, "The world has not faced a moment like this in modern energy history." However, he confidently declared that India's crude supply position is secure, with volumes already secured exceeding what the Strait of Hormuz would have delivered.[m+12]
India's Diversified Energy Strategy Pays Off
A cornerstone of India's energy security has been its aggressive strategy to diversify crude oil import sources over the past two decades. Puri highlighted that India now procures crude oil from around 40 countries, a significant increase from just 27 nations in the 2006-07 financial year. This broad sourcing network has enabled the country to adapt quickly to geopolitical disruptions. Critically, India has reduced its reliance on the Strait of Hormuz by increasing "non-Hormuz sourcing" to approximately 70 percent of all crude imports, a substantial jump from 55 percent before the conflict escalated. Russia, for instance, has emerged as a major supplier, accounting for 37 percent of India's total crude imports in 2024. Other key suppliers include Iraq, Saudi Arabia, and the United Arab Emirates.[indianewsnetwork+12]
Robust Strategic Reserves and Refining Capacity
Beyond diversified imports, India has built up significant strategic petroleum reserves (SPRs) to cushion against supply shocks. The country maintains strategic reserves with a total capacity of approximately 5.33 million metric tonnes (MMT) at three underground rock cavern sites in Visakhapatnam, Mangaluru, and Padur. These reserves are currently about 80 percent full and can meet roughly 9.5 days of India's crude oil requirements. When combined with commercial inventories held by oil marketing companies, India boasts a total buffer of approximately 74 days for crude oil and petroleum products. This comprehensive reserve capacity provides a substantial safeguard against short-term disruptions. The government has also approved plans to expand SPR capacity by an additional 6.5 MMT at Chandikhole and Padur, which would add another 12 days of crude oil coverage.[drishtiias+9]
India's robust domestic refining capacity further bolsters its energy resilience. The country is one of the world's largest refining hubs, with a capacity that has expanded to around 258 million metric tonnes per annum (MMTPA). Puri informed parliament that domestic oil refineries are operating at exceptionally high utilization levels, in several cases exceeding 100 percent capacity. This strong refining capability ensures that India can process ample crude oil to meet domestic demand and even export refined petroleum products like diesel and petrol to other countries.[assamtribune+9]
Ensuring LPG and Natural Gas Availability
The minister also addressed concerns regarding the supply of liquefied petroleum gas (LPG), a crucial cooking fuel for Indian households. He stated that LPG production has been increased by approximately 28 percent in recent days through specific refinery directives. Furthermore, India has diversified its procurement of liquefied natural gas (LNG), with cargoes now being secured from the United States, Norway, Canada, Algeria, and Russia, in addition to traditional Gulf sources. This ensures that LNG shipments are arriving almost daily through alternative routes. Puri emphasized that domestic piped gas to homes and compressed natural gas (CNG) for vehicles continue to receive 100 percent supply without any cuts. Power generation for every household and industry remains fully protected.[indianewsnetwork+12]
Prime Minister Narendra Modi also weighed in on the issue, urging state governments to enhance monitoring to curb black-marketing and hoarding of fuel and LPG. He highlighted India's proactive measures in energy self-reliance and significant strategic petroleum reserves, underscoring the government's commitment to protecting citizens from global shocks.[indianewsnetwork+2]
Red Sea Impact Managed, Not Disruptive to Oil
While the Middle East conflict and the Red Sea crisis have caused significant disruptions to global shipping, leading to rerouting of vessels around the Cape of Good Hope and adding 14-20 days to delivery schedules, India has largely insulated its crude oil imports from direct disruption. Freight costs for oil tankers from the Gulf to India have risen by 35-40 percent, and marine war-risk insurance premiums increased by 15-20 percent during peak crisis months. However, Puri's assurances confirm that these challenges have not impacted the actual flow of crude oil into the country due to India's robust preparedness and diversified sourcing. The Red Sea crisis has, however, affected other commodities, causing delays and increased costs for imports of fertilizers, sunflower oil, machinery components, and electronic goods, as well as exports of items like spices and textiles.[ijfmr+2]
India's overall crude oil import dependency remains high, ranging between 85 and 89 percent in recent years. Despite this reliance, the government's long-term strategy includes boosting domestic exploration and production, and promoting alternative fuels like ethanol blending, which is estimated to reduce crude oil demand by approximately 44 million barrels annually. These efforts aim to further strengthen India's energy independence in the face of global uncertainties.[ijfmr+14]
