India’s oil supply has remained stable despite disruptions linked to tensions around the Strait of Hormuz and the Red Sea, Union Petroleum Minister Hardeep Singh Puri said on October 16, adding that the country has continued importing crude while also exporting refined petroleum products.
Puri said India had successfully managed the earlier tension around the Strait of Hormuz, through which he said substantial cargo continued to arrive. He added that the country was now facing fresh disruption risks because of increased tension in the Red Sea region.
According to the minister, India is currently importing and consuming more than 5 million barrels of oil a day while exporting about 1 million barrels of oil daily. He attributed this position to the diversification of supply sources and an expansion in domestic refining capacity.
“Today, in the midst of all this, we are importing more than 5 million barrels of oil in a day and consuming it, and we are also exporting 1 million barrels of oil,” Puri said, according to the report. He said the increase in refining capacity had made this possible.
The minister also pointed to a major change in India’s crude-import pattern since February 2022. At that time, crude imports from Russia accounted for less than 0.2% of India’s total imports, he said. Russia’s share has since increased substantially, although the report did not provide a current percentage.
Puri said India had earlier imported about 800,000 barrels of crude a day from the United Arab Emirates and a similar volume from Saudi Arabia, while noting that these figures vary. The shift in sourcing has taken place as geopolitical tensions have affected international oil flows and raised concerns about supply routes.
The minister said India had faced the disruption without fuel shortages and that prices had also remained under control. His comments are significant for transport, manufacturing, logistics and household energy costs, all of which remain exposed to changes in crude prices and the availability of refined fuels.
Brent crude was trading above $105 per barrel at the time of the report, despite a slight decline. Market experts cited in the report said prices could rise further and approach $120 per barrel if the disruptions continue.
The report linked the rise in crude prices to tensions involving the United States and Iran around the Strait of Hormuz, as well as disruption in the Red Sea attributed to Houthi activity. It also referred to tensions involving Saudi Arabia and the Houthis as another factor affecting Saudi supply.
Puri said the government had taken steps in advance to diversify supply sources and strengthen refining capacity. The minister’s comments indicate that India’s immediate response to external oil disruptions is being built around a wider supplier base, continued imports and greater domestic refining capacity.
