Indian Refiners Consider Russian Oil as Hormuz Crisis Disrupts Supplies

India’s state refiners and officials met to discuss contingency plans after the crisis in Iran has largely stopped crude flows through the Strait of Hormuz, a route that carries a large share of the country’s oil imports, as per Bloomberg report. 

Contingency Options Include Russian Cargoes 

As per the report, officials are evaluating the use of Russian crude vessels currently anchored in Asian waters. Late last week, about 9.5 million barrels of Russian oil were reported to be idle near Indian ports.  

India’s imports of Russian oil fell to just over 1 million barrels per day in February, roughly half of the peak level recorded after the Ukraine invasion. 

Strategic Petroleum Reserve and Alternative Sources 

The oil ministry indicated that combined commercial stocks and state reserves could sustain the market for up to two weeks. The strategic petroleum reserve holds approximately 30 million barrels, equivalent to about six days of consumption.  

Additional measures under discussion include fast‑tracking supplies from Venezuela, increasing domestic production, and requesting Saudi Aramco to route more crude via the Yanbu pipeline to bypass Hormuz. 

Read More: Crude Oil Prices Surge Most in 4 Years as Iran Conflict Disrupts Gulf Tanker Flows! 

Potential Impact on Fuel Exports 

If the Hormuz blockage persists, the government may limit fuel exports to safeguard domestic demand.  

Prioritisation could shift towards household gas and piped supplies, with industrial users encouraged to switch to alternative fuels. The move would aim to balance supply security without affecting the modest strategic reserve. 

Broader Energy Dependency 

Data from Kpler show that 2.5 million to 2.7 million barrels per day of India‑bound crude normally transit Hormuz.  

Approximately two‑thirds of LNG shipments and about 95 percent of LPG supplies also originate from the Middle East, highlighting the region’s importance to India’s energy mix. 

Conclusion 

India is exploring Russian cargoes, strategic reserves, and alternative supply routes to mitigate the disruption caused by the Hormuz crisis. The measures aim to maintain adequate fuel availability while limiting any immediate impact on domestic consumption. 

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