India Boosts Venezuela Oil Imports as Hormuz Tensions Push Crude Diversification Strategy

New Delhi: India is expanding its crude sourcing strategy as rising tensions around the Strait of Hormuz threaten oil supplies from West Asia. To reduce the risk of supply disruptions, Indian refiners are increasing imports from distant producers, particularly Venezuela, Brazil and African nations, while continuing to rely heavily on Russian crude.
The shift is already reflected in August import data. Venezuela has emerged as India’s fourth largest crude supplier, with imports reaching about 444,000 barrels per day. Russia remains the country’s largest source at nearly 2 million barrels per day, while supplies from the United States and Iraq stand at approximately 153,000 and 118,000 barrels per day respectively.
The renewed interest in Venezuelan oil follows the resumption of purchases earlier this year. Between April and July, crude from Latin America accounted for 12.7 percent of India’s total imports, a sharp rise from 3.5 percent during the same period last year. Meanwhile, West Asia’s share dropped from 43 percent to around 30 percent, highlighting India’s effort to diversify its energy basket rather than depend on a single region.
Despite the diversification, Gulf producers continue to hold a significant logistical advantage. Their proximity to India means shorter shipping times, lower freight costs and reduced insurance expenses compared to cargoes arriving from Latin America or West Africa. As a result, the Gulf remains difficult to replace completely, especially during periods of strong domestic demand.
India is also strengthening its long term energy security by expanding domestic oil and gas production, enhancing strategic petroleum reserves and accelerating investments in natural gas, biofuels, electric vehicles and renewable energy. However, with petrol, diesel, aviation fuel and petrochemicals still powering much of the economy, crude oil is expected to remain central to India’s energy mix for years, making diversification the country’s most practical strategy against global supply shocks.