India Maintains Diversified Energy Supplies Amid Ongoing Russian Oil Imports

India Continues to Import Crude Oil from Russia Amid Volatile Global Energy Markets

Key Findings:

• India has continued to purchase crude oil from Russia since 2022, with Russia remaining the largest supplier of oil to India in February.
• India has not imported any sanctioned Russian oil so far.
• The country has diversified its energy sourcing beyond the Strait of Hormuz, with 55% of its crude oil imports in February originating from regions outside the strait.

Crude Sourcing and Diversification

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

India determines its crude sourcing decisions independently based on domestic needs. The country has emerged as one of the largest buyers of Russian crude since 2022, following Western sanctions on Moscow. This has led to discounted oil being redirected towards Asian markets.

India has diversified its energy sourcing beyond the Strait of Hormuz, which has become a key geopolitical risk point amid the widening Middle East conflict. Alternative routes such as the Habshan–Fujairah oil pipeline in the UAE and the Yanbu pipeline in Saudi Arabia bypass the strait.

LPG and Refinery Supplies

India remains well positioned in terms of crude oil, refined product, and LPG availability. The government has instructed both public and private refiners to prioritize LPG production and avoid diverting propane and butane for petrochemical manufacturing.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

India has substantial refining capacity and could shift output priorities if required. The country has enough crude oil supplies, with refineries such as Mangalore Refinery and Petrochemicals Ltd (MRPL) adequately stocked.

LNG Supplies and Gas Allocation

The government is reassessing gas allocation after QatarEnergy and Petronet LNG invoked force majeure on LNG supplies following disruptions linked to the Middle East conflict. India imports roughly 30% of its LNG through routes connected to the Strait of Hormuz.

The government is seeking additional LNG cargoes to ensure supply stability and is re-prioritizing gas allocations. One state-run company has already secured an additional LNG cargo.

Energy Imports from the US

India is open to expanding energy imports from the United States if additional supplies become available. The country was already buying $15 billion worth of energy products from the US.

Vulnerability on LPG Supplies

India's position on LPG supplies has improved in recent days, with the country now at a comfortable position in LPG, crude oil, and refined products supplies.