India assures uninterrupted oil product supply; crude diversification offers cushion in Freight News 05/03/2026 India has sufficient stocks of crude oil and petroleum products to address potential short-term disruptions resulting from the Middle East conflict, and the country’s energy companies can access supplies that do not pass through the Strait of Hormuz, a government statement said March 3. “India has ensured both availability and affordability of energy for its population by diversifying its sources,” the statement from the Ministry of Petroleum and Natural Gas said. “Indian energy companies now have access to energy supplies that are not routed through the Strait of Hormuz. Such cargoes will remain available and help mitigate supplies that may be temporarily affected en route through the Strait of Hormuz.” A separate petroleum ministry statement from March 2 said India would ensure uninterrupted domestic supplies of petroleum products and take all necessary measures to keep these products affordable for end-users. The government also said it was in discussions with all state-owned refiners to develop a domestic supply strategy. Around 52% of India’s roughly 5 million barrels/day of crude imports pass through the Strait of Hormuz, with Iraq, Saudi Arabia, the UAE, Kuwait and Qatar as its key Middle Eastern suppliers, based on data from S&P Global Commodities at Sea(opens in a new tab). India’s exposure to Hormuz flows was lower at 41% in 2025 but has increased in recent months as Indian refiners have reduced their Russian crude purchases, averaging around 1.15 million b/d in the first two months of 2026, compared with 1.7 million b/d in 2025. “It is an extremely constraining situation for India to get crude supplies. Alternative routes have limitations of capacity, such as the Gulf of Oman. In the event of a prolonged conflict, India will need to maximize supplies from longer routes, like the US, West Africa and Venezuela, and even from Russia if they can work out a plan,” said DLN Sastri, former director of refining at the Federation of Indian Petroleum Industry. India’s Strategic Petroleum Reserves currently have about 9.5 days of net oil imports. In addition, state-run oil companies hold storage facilities for crude oil and petroleum products equivalent to 64.5 days of total net imports, bringing the current total national storage capacity for crude and petroleum products to 74 days of total net imports, according to petroleum ministry data. By comparison, International Energy Agency member countries are required to maintain oil stock levels equivalent to at least 90 days of their net imports. LPG diversification “India’s LPG diversification plan will also help under current circumstances,” said one senior oil industry source in India. According to S&P Global Energy CERA, India is increasingly turning to US and Canadian LPG as geopolitical tensions reshape global trade flows. With US–China frictions redirecting American barrels and India seeking to reduce its dependence on traditional Middle Eastern suppliers, North American LPG is gaining a stronger foothold in India’s import mix. Recent trade patterns show rising US volumes moving into India, supported by competitive pricing and expanding export capacity. Canada is also emerging as a complementary supplier as Asian buyers diversify. Together, these shifts highlight a broader realignment in LPG flows, with India well‑positioned to leverage North America’s growing role in glob