Around 70% of India’s crude oil imports now bypass Hormuz

India now sources approximately 70% of its crude oil imports via supply lines that bypass the Strait of Hormuz, significantly cutting the country’s exposure to disruptions resulting from the prevailing tensions in the Middle East, the government of India said in a recent press release.

Senior officials from India’s oil and gas ministry, foreign ministry, ministry of ports, ministry of shipping and waterways and ministry of information and broadcasting provided details about the steps taken by the India government during a press meet held in New Delhi on March 11.

India’s daily crude oil consumption stands at 5.5mn barrels. Officials said diversified sourcing from around 40 countries has helped secure volumes in excess of what would normally have arrived through the Strait of Hormuz during this period. Two additional crude cargoes are already on their way to the country and will help in further boosting supplies in the days ahead. Indian refineries are operating at very high-capacity utilisation levels, in some cases exceeding 100%, they said.

The government is also focusing on the natural gas sector. India’s cumulative natural gas demand is about 189 mmscmd, out of which about 97.5 mmscmd is produced locally. Approximately 47.4 mmscmd of supply has been impacted by the force majeure conditions. This has resulted in sourcing from alternative suppliers and routes. Indian gas supplies have secured LNG cargoes from new sources and two shipments are currently on the way to India, the officials stated.

To take care of the distribution part, the government issued a Natural Gas Control Order on March 9, 2026 under the Essential Commodities Act to prioritise supplies for vital industries. Piped natural gas for domestic cooking usage and compressed natural gas for transport will continue to get full supply, while the industrial sector connected to the gas grid will get about 80% of their previous six-month average allocation. Fertiliser plants will get about 70%, and refineries and petrochemical plants will cut usage by approximately 35% so that priority sectors remain protected.

The government has also announced emergency measures to address the liquefied petroleum gas supplies. Approximately 60% of India’s LPG consumption is met through imports, and about 90% of the imports are routed through the Strait of Hormuz. To effectively handle the disruptions, refineries and petrochemical complexes have been asked to reroute streams such as propane, butane, propylene and butane to the LPG pool, boosting local LPG output by almost 25%. Almost the whole of the domestic LPG production is now being directed toward household demand.

In case of non-domestic LPG priority is being given to vital entities like hospitals and educational institutions. A committee has been set up to review allocations for commercial consumers such as hotels and restaurants.

Authorities said few instances of panic booking and hoarding were reported, but the average LPG delivery time remains 2.5 days. Steps such as expanding the Delivery Authentication Code system to about 90% of consumers and hiking the minimum gap between bookings from 21 days to 25 days have been announced to handle demand and stop diversion.

The officials also stated that 28 Indian-flagged ships are at present operating in the Persian Gulf. Out of these 28 vessels, 24 vessels are carrying 677 Indian seafarers and are located west of the Strait of Hormuz, while four ships with 101 Indian seafarers are located to the east of the strait.

Advisories have also been issued by the government requesting Indian-flagged ships to take into account enhanced security protocols. Ship managers, recruitment companies and Indian missions in the area have been asked to ensure help wherever needed. Port operations across India continue to be normal, while the government is monitoring vessel movements and cargo flows to maintain export-import trade.

In its update, the Ministry of External Affairs said that there are around 10mn Indians residing in the Gulf Cooperation Council countries. Advisories have also been issued by Indian missions from time to time. These missions have also helped stranded travellers, mostly tourists and transit passengers, to fly back to India via flights from cities such as Muscat, Riyadh and Jeddah.

Approximately 9,000 Indian nationals are residing in Iran at present. The Indian mission there is in close touch with the community, while students and pilgrims have been relocated from Tehran to safer areas in the country. Help is also being provided for land border crossings into Armenia and Azerbaijan for onward travel to India.

Officials confirmed that two Indians died and one remains missing following attacks on merchant vessels in the region.

Meanwhile, the Ministry of Information and Broadcasting said the Indian home secretary has held talks with various state governments and advised strict action against hoarding and black marketing of essential items while making sure that availability of supplies remain uninterrupted. States and union territories have also been directed to appoint official spokespersons and provide verified updates through government channels.

Officials said the government remains vigilant about the developments in the Middle East while coordinating across ministries to safeguard India’s energy security, maritime trade and the welfare of its citizens residing overseas.