In the midst of one of the most severe global energy disruptions in modern history, India has moved swiftly to secure its fuel supplies and shield its citizens from the worst consequences of the crisis.
A series of measures have been undertaken by the government to ensure that petroleum products, natural gas and cooking fuel remain available across the country despite escalating tensions in West Asia.
The disruption follows the effective closure of the strategically vital Strait of Hormuz, a maritime corridor through which roughly one-fifth of the world’s crude oil, natural gas and LPG normally flows.
A Global Crisis Unfolds
The closure of the Strait of Hormuz marks an unprecedented moment in energy history. Nearly 20% of global crude oil and natural gas shipments typically pass through this narrow waterway linking the Persian Gulf with international markets. Its disruption has forced several countries to adopt emergency measures to conserve fuel and maintain.
Diversified Crude Strategy Shields India
A key pillar of India’s resilience lies in its diversified crude oil procurement strategy. Before the current crisis, about 45% of India’s crude imports passed through the Strait of Hormuz. However, India has successfully secured alternative supplies that exceed the volumes previously routed through the strait.
Non-Hormuz sources now account for approximately 70% of India’s crude imports, compared with 5% before the conflict began. The country currently sources oil from 40 nations, up from 27 in 2006-07, a diversification achieved through years of diplomatic engagement and energy policy planning.
Natural Gas Prioritised For Essential Sectors
India’s natural gas supply system has also been carefully managed through prioritised allocation. The country produces around 90 million metric standard cubic metres per day (MMSCMD) of gas domestically, supplemented by imports.
Large liquefied natural gas cargoes are now arriving almost daily through alternate routes, enabling India to compensate for earlier shortfalls. According to the government, the country’s power generation and industrial energy needs remain fully protected
LPG Supplies Strengthened
Cooking gas, one of the most critical fuels for Indian households, has been another focus area for the government. India previously sourced around 60% of its LPG from Gulf countries such as Saudi Arabia, United Arab Emirates, Kuwait and Qatar.
In response to the crisis, procurement has been rapidly diversified to include suppliers such as the United States, Norway, Canada, Algeria and Russia. At the same time, refineries across India have been directed to maximise LPG production.
Hospitals and educational institutions have been placed under uninterrupted priority supply to ensure essential services continue without disruption.
Tackling Panic Buying And Hoarding
While supply levels remain stable, the government has noted instances of panic booking and hoarding driven largely by consumer anxiety rather than genuine shortages.
To address this, several control mechanisms have been introduced. The Delivery Authentication Code system, which confirms cylinder deliveries through a one-time mobile code, is being expanded from 50% to 90% of LPG consumers. This system ensures that deliveries are recorded only when customers confirm receipt, reducing the possibility of diversion.
Additionally, minimum booking intervals have been introduced, 25 days in urban areas and 45 days in rural and remote regions, to moderate demand surges.