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India draws up contingency plan to secure crude amid escalating West Asia conflictIndia plans alternative crude supply routes and increased Russian imports as the West Asia conflict disrupts the Strait of Hormuz, threatening energy security and raising freight costs.By CNBCTV18.com March 2, 2026, 11:03:41 PM IST (Published)3 Min ReadIndia is drawing up a contingency plan to safeguard crude supplies as the widening West Asia conflict raises fresh concerns over energy security, sources told Moneycontrol.

According to sources cited by Moneycontrol, the petroleum and natural gas ministry held multiple meetings with oil marketing companies over the weekend to assess the evolving situation and firm up alternative sourcing strategies. These include exploring new supply routes and increasing intake of Russian crude if disruptions intensify.

India meets nearly 90% of its crude oil requirement through imports, with almost half sourced from Iraq, Saudi Arabia, the UAE and Kuwait — countries now directly exposed to the escalating conflict. The risk to supply chains has heightened after the Strait of Hormuz — a key artery for global oil flows — faced severe shipping disruptions. Industry sources told Moneycontrol that vessel movement through the strait has come to a standstill. Nearly half of India’s crude oil imports and about 85% of its LPG supplies pass through this route.

The Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman, handles roughly 20% of global oil supply. Any prolonged disruption could roil energy markets worldwide. “If the strait is disrupted, Indian refiners will have to take longer routes leading to extended voyages and increased freight costs,” sources told Moneycontrol. Prashant Vasisht, senior vice president and co-group head, corporate ratings at Icra Ltd, said any blockage would have a broader impact on global energy markets.

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To mitigate risks, India is considering routing supplies through the Saudi East-West pipeline to the Red Sea and the Abu Dhabi Crude Oil Pipeline to Fujairah, thereby bypassing the Strait of Hormuz, sources told Moneycontrol.

Refiners are also weighing higher purchases of Russian crude if access to Middle Eastern grades tightens. In recent months, India’s reliance on Gulf barrels had increased after refiners pared Russian imports following US sanctions on major producers Rosneft and Lukoil. However, analytics firm Kpler noted continued availability of Russian cargoes in the Indian Ocean and Arabian Sea, including volumes in floating storage.

“Should Middle Eastern inflows tighten, Indian refiners could pivot back toward Russian grades relatively quickly,” Sumit Ritolia, lead research analyst, refining and modelling at Kpler, said.

Despite diversification efforts, Gulf crude retains a logistical advantage, with a voyage time of five to seven days compared with 25–45 days from Atlantic suppliers, according to Kpler data.

Russia remained India’s top crude supplier in February, with imports at 1.1 million barrels per day (bpd), though lower than the 1.8 million bpd peak seen in November. Imports stood at 1.2 million bpd in January. Shipments from Iraq were at 992,000 bpd in February versus 1.06 million bpd in January, while Saudi Arabia exported 1.04 million bpd to India in February, up from 774,000 bpd in the previous month, Kpler data showed.

Also Read: Rising oil prices and freight rates hit India amid West Asia conflictContinue ReadingTagscrude oil importIndia Crude oiliran-us tensionsStrait of Hormuzwest asia