India Diversifies Oil Imports to Mitigate West Asia Conflict Shocks

The Government of India has implemented a comprehensive energy security strategy to counter supply shocks caused by conflict in West Asia and blockades in the Strait of Hormuz. Officials report that the country maintains an energy buffer of over 250 million barrels of crude and refined products, providing 70 to 74 days of coverage. These reserves are stored in underground caverns in Mangalore, Padur, and Visakhapatnam, with further expansions planned for Chandikhol and Padur.

To reduce vulnerability, India has diversified its procurement to roughly 40 countries, decreasing reliance on the Strait of Hormuz from 50% to between 20% and 40%. Russia remains the largest crude supplier as of February 2026, supported by a 30-day waiver from the US Treasury. While the Ministry of Petroleum and Natural Gas asserts that crude supplies remain stable, local disruptions have triggered panic buying and long queues at LPG centers in cities such as Noida, Lucknow, and Pune. In response, the government directed states to take strict action against fuel hoarding.

Economically, India has remained relatively resilient compared to regional neighbors, though the conflict has forced the government to block rice exports to curb inflation and subsidize fertilizer costs. The state has also prioritized the City Gas Distribution sector to shield CNG users from price volatility, diverting gas from industrial sectors. Meanwhile, the Ministry of Shipping is monitoring 28 Indian vessels in the Persian Gulf following reports of strikes near the strait.