Despite concerns over disruptions from the Strait of Hormuz, India is in a “very comfortable position” in terms of supplies of crude oil, petroleum products and LPG.
According to sources, the country currently has adequate availability of energy supply from diverse sources, which is much more than the potential quantity affected by the Strait of Hormuz. India’s existing reserves of crude oil and petroleum products are also sufficient to meet domestic demand.
Sources said the government is closely monitoring the situation and is planning to increase supplies from alternative geographies to overcome any potential supply disruption related to the Strait of Hormuz.
He highlighted that India has significantly diversified its crude oil imports over the last few years. India is importing crude oil from Russia from 2022. Although Russia’s share in India’s total crude oil imports was only 0.2 percent in 2022, the share has increased significantly in the years since.
“In February, India imported about 20 percent of its total crude oil imports from Russia, equivalent to about 1.04 million barrels per day,” government sources said.
Meanwhile, sources have clarified that the reports of closure of Mangalore Refinery and Petrochemicals Limited (MRPL) refinery are false.
“The MRPL refinery is fully operational and has adequate crude oil reserves,” he said.
In case of LPG, the government has directed all LPG refineries to increase production to ensure adequate availability across the country. Officials said that India’s situation in terms of LPG reserves is currently quite good.
According to sources, LPG from America has started coming to India from January. Indian public sector oil companies had signed a one-year contract in November 2025 to import about 2.2 MT per annum of LPG from the US Gulf Coast for the 2026 contract year.
Additionally, authorities plan to use petrochemical production for domestic consumption to help ease demand pressure in the energy sector.
