India Diversifies Energy Imports to Buffer Global Supply Shocks

Petroleum and Natural Gas Minister Hardeep Singh Puri announced that India maintains fuel reserves sufficient for 76 to 80 days of consumption to buffer against supply disruptions, such as potential closures of the Strait of Hormuz. To reduce dependence on volatile regions, India now imports energy from 41 nations, including increased gas from Mozambique and LPG from the United Arab Emirates. Domestically, the government launched E85 ethanol-blended fuel to lower petroleum reliance.

Puri defended India's continued purchase of Russian oil, stating that national interest and pricing drive the policy. While the United States imposed punitive tariffs on Indian imports in August 2025 due to these purchases, a subsequent trade deal reduced those tariffs to 18% in early 2026. Currently, Russian supplies are largely maintained through U.S. sanctions waivers.

To further hedge against potential shifts in U.S. policy, India is exploring new partnerships. Ministry of External Affairs Secretary Rudrendra Tandon described a "perfect complementarity" in the energy sector with Venezuela following a visit by President Delcy Rodriguez. This diversification strategy aims to replace Russian supplies if U.S. waivers end, while maintaining strong bilateral ties with Russia ahead of President Vladimir Putin's planned visit for the BRICS Leaders' Summit.