India taps alternative crude sources as Iran conflict disrupts Hormuz route

New Delhi: Indian refiners have begun negotiating additional crude cargoes from the US, Russia and West Africa to ensure supplies remain adequate if the Middle East conflict drags on, industry officials and analysts said.

Refineries have also deferred planned maintenance shutdowns and are maintaining normal processing rates to build buffers that could meet the country’s near-term fuel requirements.

India imports about 88 per cent of its crude requirement, with roughly half of February supplies passing through the Strait of Hormuz, the narrow sea lane between Iran and Oman that serves as a key global energy transit route.

Recent military strikes by the US and Israel on Iran, followed by Tehran’s retaliatory attacks on US bases in neighbouring countries and Israel, have sharply escalated tensions, leading to a near halt in tanker movements through the strategic waterway. “Non-strait sources are fully operational and we are sourcing more supplies from non-conflict zones,” a top oil ministry source said. Non-Strait sources accounted for 60 per cent of supplies in 2025 and have now risen to about 70 per cent.

Indian refiners are tapping crude from West Africa, Latin America and the US. The US Treasury’s 30-day waiver allowing delivery of sanctioned Russian oil already loaded on vessels has also opened another supply channel.