New Delhi: India has accelerated negotiations and signing of new crude oil and liquefied petroleum gas import agreements as global supply chains face disruption due to escalating tensions in the Middle East. The move is aimed at securing stable energy supplies and protecting the country’s economic interests amid volatile global markets.
Officials indicated that discussions with multiple suppliers are being fast tracked following detailed negotiations on pricing and long term supply arrangements. The effort forms part of a broader strategy to diversify India’s energy imports and reduce dependence on any single region.
During a recent address in Parliament, Narendra Modi highlighted the government’s progress in expanding energy sourcing. He stated that over the past eleven years India has significantly broadened its import network, increasing the number of supplier countries from 27 to 41.
Russia remains one of the potential suppliers as India had earlier imported large volumes of discounted crude following the start of the Russian invasion of Ukraine. However, those purchases were later reduced after diplomatic and trade negotiations with the United States.
The current urgency in securing additional supplies comes after tensions linked to the Iran–Israel conflict disrupted shipping routes and pushed global oil prices higher. The situation worsened after tanker movement through the Strait of Hormuz was halted. The strategic waterway normally carries roughly a quarter of the world’s seaborne crude oil and is a critical route for India, through which nearly 40 percent of its oil imports pass.
To offset supply disruptions, temporary waivers have allowed India to purchase certain quantities of Russian and Iranian oil already loaded on ships. These shipments are expected to help stabilise supply in the short term.
The government has also assured that there is no immediate shortage of petroleum products in the country. According to Suresh Gopi, India’s strategic petroleum reserves currently hold about 3.372 million tonnes of crude oil, representing roughly two thirds of their storage capacity.
Combined with stocks maintained by oil marketing companies, India’s total fuel reserves are estimated to cover around 74 days of consumption.
On the domestic front, the government has increased production of cooking gas by 25 percent to ensure uninterrupted supply for more than 33 crore households that rely on LPG for daily use. Officials have reiterated that there is no need for panic buying as measures are in place to manage supply disruptions.
