Amid the expanding conflict in Iran, the energy crisis is intensifying, particularly impacting Asia due to its reliance on Gulf oil supplies through the Strait of Hormuz. India has emerged as a significant pillar of energy security in the region.
India, being the fourth-largest refiner and fifth-largest exporter of petroleum products globally, not only meets its domestic fuel demand but also supports neighboring countries. Recent reports indicate that India supplied approximately 38,000 metric tonnes of fuel to Colombo, as confirmed by Sri Lanka President Anura Kumara Dissanayake. Additionally, India continues to deliver fuel without interruptions to Bhutan and Nepal, both of which rely entirely on India for their fuel needs. Plans are underway to dispatch an additional 40,000 metric tonnes of diesel to Dhaka by April.
Analysis conducted by India Today’s Open Source Intelligence team, based on data from key entities like the Indian Oil Corporation, Bharat Petroleum, and government sources, reveals that initial disruptions related to the Strait of Hormuz have been largely mitigated. The Ministry of Petroleum & Natural Gas in India states that the country has diversified its crude oil sourcing, now obtaining oil from more than 40 countries. This strategic move has allowed around 70% of India’s crude imports to bypass the Strait of Hormuz, thus reducing the risk exposure associated with this critical chokepoint.
India continues to serve as a net exporter of refined petroleum products, supplying fuel to over 150 countries globally. This aligns with India’s longstanding Neighbourhood First policy, which is particularly crucial during the ongoing energy crisis. Neighboring countries like Nepal and Bhutan, entirely dependent on India for fuel, have not experienced any disruptions in supply. Official statements from these countries confirm the consistent flow of fuel. In Bangladesh, recent reports indicate that additional diesel supplies have arrived, with planned deliveries totaling 40,000 tons for April, demonstrating the secure supply chain facilitated by India.
The structured regional supply network, with India at its core, is evident in the consistent fuel flows to neighboring countries amidst the ongoing Gulf-related disruptions. This strategic stability is underpinned by India’s diversified sourcing strategies and robust refining capabilities, which enable it to not only absorb shocks but also extend support across the region during challenging times.
Data analysis reveals a significant contrast in energy sourcing across South Asia. While countries like Pakistan, Bangladesh, and Sri Lanka heavily rely on Gulf oil supplies, India’s sourcing mix is more diversified, with a substantial portion sourced domestically. Nepal and Bhutan’s complete dependence on India for fuel highlights a vulnerability in the region, emphasizing the importance of India’s diversified sourcing and refining capacity to mitigate disruptions and provide support when needed.
India’s Ministry of Petroleum and Natural Gas has reassured markets by confirming stable crude oil inflows despite disruptions in the Strait of Hormuz. The ministry reports that supplies from over 41 global sources, including increased imports from the western hemisphere, have compensated for any shortfalls. Refineries are operating at full capacity, with crude oil secured for the next 60 days, ensuring no supply gap in the foreseeable future.