No immediate oil crisis for India amid Iran escalation
image for illustrative purpose
New Delhi: With crude inventories sufficient to meet at least 10 days of requirements and fuel stocks covering another 5–7 days, India is unlikely to face any near-term disruption in oil supplies despite the reported closure of the Strait of Hormuz, officials said. Even as rapidly unfolding developments following US and Israeli military strikes on Iran — including reports of the killing of the Islamic Republic’s Supreme Leader — suggest the conflict may not last very long, New Delhi has contingency plans in place should tensions escalate.
Iran’s state media said on February 28 that the Islamic Republic has shut the Strait of Hormuz, a critical energy chokepoint through which about a fifth of global oil and gas supplies transit. Officials said a short closure will have limited impact on India. Imports can be recalibrated, including higher purchases from Russia. India imports 88 per cent of its crude oil and about half of its natural gas needs. Kpler data shows 2.5–2.7 million barrels per day, nearly 50 per cent of India’s crude imports, transit Hormuz, largely from Iraq, Saudi Arabia, the UAE and Kuwait.
