West Asia conflict: No immediate energy shortage, India has sufficient reserves, says ministerHardeep Puri

THe westward Asia contravene does non posture any straightaway threat to India’s energy security, according to people aware of the matter who cited what they said were crude oil and fuel stocks of 25 days each, as the government sought to allay concerns from observers following repeated escalation in hostilities in the Gulf — a region from where close to half of India’s crude oil imports come.Petroleum minister Hardeep Singh Puri said India has sufficient energy reserves to deal with the ongoing situation and that consumers of petrol, diesel and cooking gas will not immediately face any shortage.India imports just over five million barrels of crude per day, of which roughly 2.5 million bpd transit the Strait of Hormuz, the 33-kilometre passage between Iran and Oman through which shipping has ground to a near-halt after Iranian retaliatory strikes on the Gulf. Qatar, which is one of the main suppliers of LNG, paused production on Monday.The ministry said it has established a 24x7 control room to monitor supply and stock positions across the country. “At present, the government is reasonably comfortable in terms of stocks,” it said in a statement, adding it was “cautiously optimistic that phased measures can be taken, if required, to further mitigate the situation.”People with direct knowledge of the matter said India has crude oil stocks for 25 days and fuel stocks for 25 days, over and above the stockpile in strategic petroleum reserves — and has diversified its energy sourcing from over 40 countries, reducing dependence on Hormuz supplies to 40%.Over 60% of India’s energy needs are now met from producers in North America, Latin America, West Africa and the Asian part of Russia, they said, requesting anonymity, adding that cargoes not routed through the Strait would remain available to mitigate any temporary disruption.On natural gas, India also holds cooking gas stocks sufficient to last over three weeks. New Delhi is in touch with producers including Canada and Norway for additional LNG supplies, as Iran’s attack has disrupted the production capacity of Qatar, one of India’s major suppliers. “Besides Qatar, India is having long-term, large supply contracts for LNG from the US, Australia and Russia,” one of the people said.The government noted that only 50% of India’s natural gas requirements are met through imports, and that domestic gas output is sufficient to meet cooking gas requirements in an emergency.The person cited above said the conflict is not being seen as one that will stretch on. “The war is unlikely to continue for long and we do not foresee any threat to country’s energy security immediately,” he said. People estimated that situation may ease in the next couple of weeks.The conflict’s impact on supply is no longer merely logistical after developments this week. Iraq has cut output at the giant Rumaila oil field, as storage tightens due to export disruptions at Hormuz, Bloomberg reported. Saudi Aramco halted operations at its Ras Tanura refinery after a drone strike on Monday, while debris from an intercepted drone caused a major fire at the UAE oil-trading hub of Fujairah, Bloomberg reported. This facility is unique since it opens into the Gulf of Oman, accessible to vessels from the Indian ocean without having to navigate the Strait of Hormuz.Kpler, which tracks global energy flows, puts India’s combined commercial stocks — including strategic reserves and floating cargo already at sea — at around 100 million barrels, or 40-45 days of import cover.Besides inventories of crude oil and products held with refiners, pipelines and depots, the state-run Indian Strategic Petroleum Reserves Ltd operates three underground storage facilities with a combined capacity of 5.33 million tonnes.Two planned expansions — at Chandikhol in Odisha (4 million tonnes) and an additional facility at Padur in Karnataka (2.5 million tonnes), announced in 2021 — remain incomplete.Saudi Arabia, for its part, is exploring the option of routing more barrels through the Red Sea — but that corridor carries its own risks. Yemen’s Iran-backed Houthi militant group has threatened to resume attacks on vessels sailing through the waterway, Bloomberg reported, leaving no disruption-free alternative passage for Gulf energy exports.On prices, people aware of the matter acknowledged that rising crude costs — rather than availability — are the more pressing near-term concern. Global benchmark Brent crude has jumped as much as 18% in just two days, surpassing $85 a barrel for the first time since July 2024 on Tuesday, before easing slightly after an International Energy Agency document showed the body was ready to help stabilise the global oil market.The Indian basket price — calculated as a ratio of sour grade crude and Brent that reflects actual refinery intake —hit $80.16 per barrel as of March 2, the highest of the current fiscal year, according to government data from the Petroleum Planning and Analysis Cell. The basket had troughed at $62.20 in December 2025, and an average of $69 in February.Should the disruption extend beyond the two-week window estimated by people, India’s options take a new dimension. Indian refiners had curtailed purchases of Russian oil in recent months to avoid punitive tariffs and facilitate an interim trade deal with Washington — a deal now in limbo after the US Supreme Court struck down President Donald Trump’s country-based tariffs.Kpler has noted that Russian cargoes currently floating in the Arabian Sea without firm buyers could be absorbed relatively quickly if required.