India’s fuel supply has remained stable despite disruptions linked to tensions around the Strait of Hormuz and the Red Sea, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said, according to a report by Aaj Tak Business published on October 16.
Puri said India had managed to avoid fuel shortages while increasing its crude imports and maintaining exports of refined petroleum products. He described the country as having not only absorbed the impact of global disruptions but also strengthened its position during the period of uncertainty.
The minister said India had successfully handled the earlier disruption around the Strait of Hormuz, through which substantial cargo continued to arrive. He added that the Red Sea was now experiencing heightened tensions, creating another challenge for international oil movement and supply chains.
According to the report, Puri attributed India’s ability to manage the situation to the diversification of crude supply sources and the expansion of domestic refining capacity. He said the country was importing and consuming more than 5 million barrels of oil a day while exporting around 1 million barrels of oil daily because of its increased refining capacity.
The figures are significant for India’s transport and urban economy, where petrol, diesel and other petroleum products support public and private mobility, freight movement, construction activity and essential services. Any sustained disruption in crude arrivals or refined-product availability can place pressure on logistics and operating costs, although Puri said no fuel shortage had occurred and prices had remained under control.
Puri also pointed to a major change in India’s crude-sourcing pattern since February 2022. He said Russian crude accounted for less than 0.2% of India’s imports at that time but had since become a much larger component of the country’s supply. He also referred to earlier daily imports of about 800,000 barrels each from the United Arab Emirates and Saudi Arabia, while noting that these figures change over time.
The minister’s comments came as Brent crude was trading above $105 a barrel, the report said. The price had seen a slight decline but remained elevated. Market experts cited in the report said crude could rise further and approach $120 a barrel if the disruption continued.
The Strait of Hormuz and the Red Sea are important routes for global energy trade. Disruptions in either corridor can affect shipping schedules, insurance costs and the availability of crude and refined products in importing markets. For India, the immediate issue is not only the volume of oil available but also the resilience of the network that brings crude to refineries and distributes fuel across states and cities.
Puri said the government had taken steps in advance to diversify supply sources and expand refining capacity. The minister’s statement provides the latest official assessment cited in the report, while the duration of the geopolitical tensions and their eventual effect on crude prices remain dependent on developments in the affected shipping corridors.
