The Strait of Hormuz is critical for global oil trade. Recently, tensions in the region led to its de facto closure due to conflicts that started in February 2026. This created a challenge for India, which relies on imports for 90% of its crude oil. Without large strategic reserves like other major economies, India needed to adapt quickly.
Despite the risks, India has managed its oil supply better than expected. Government reports suggest that the country has around 60 days’ worth of petroleum supplies, thanks to a diversified strategy and strong ties with Russia. However, the ongoing conflict still poses risks to India’s Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) supplies.
Shifting Crude Procurement
According to Sumit Ritolia, an expert from Kpler, India has significantly shifted its crude procurement strategy. As Middle Eastern flows became uncertain, Indian refiners turned to other sources, increasing imports from the U.S., Brazil, West Africa, and Venezuela. This adjustment wasn’t just about swapping one supplier for another; it involved a complete re-evaluation of available options based on logistics, refinery compatibility, and economic factors.
During this time, Russian oil has risen in prominence in India’s import mix. Since the Russia-Ukraine conflict began in 2022, Russian crude has become a backbone for India, even reaching levels not seen in years due to substantial discounts. Recent waivers on sanctions by U.S. authorities have further facilitated this trade, making Russian oil more accessible and financially viable.
Middle Eastern Supplies through Alternate Routes
With the Strait of Hormuz effectively shut, Indian imports from the region have declined sharply. April 2026 saw a drop to about 4.4 million barrels per day (bpd), down from approximately 5.2 million bpd. In response, India has rerouted Middle Eastern supplies through pipelines, like Saudi Arabia’s East-West pipeline and the UAE’s Habshan-Fujairah pipeline, both of which provide alternative paths for oil to reach India.
Venezuela’s Resurgence
Interestingly, Venezuelan crude oil is making a comeback in India. After years of sanctions, recent shifts in U.S. policy have allowed Venezuela to once again supply oil to India, helping offset losses from other regions.
Global Context and Concerns
Despite these strategies, India’s overall crude imports have fallen due to global supply tightening. Reports indicate that current imports are running about 700-800 thousand barrels per day below normal levels. The uncertainty surrounding the Strait of Hormuz suggests that this trend may continue for a while.
Looking ahead, experts foresee that Indian import patterns will largely remain stable, with a reliance on Russian and Venezuelan oil, alongside increased U.S. imports.
Additionally, India is tackling demand challenges by raising petrol and diesel prices, a strategy aimed at curbing excessive consumption while helping oil marketing companies recover expenses amid soaring crude prices.
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