India Diversifies Oil, LPG Supplies
Analysis based on 8 articles · First reported Mar 06, 2026 · Last updated Mar 06, 2026
The diversification of India's energy supply, particularly increased imports from Russia and the United States, is expected to stabilize domestic fuel prices and ensure availability despite geopolitical tensions affecting the Strait of Hormuz. This proactive approach by India could mitigate potential spikes in global crude oil and LPG prices, offering some stability to the energy markets.
India is in a 'very comfortable position' regarding crude oil, petroleum products, and LPG supplies despite concerns over disruptions through the Strait of Hormuz due to escalating tensions in West Asia. The country has significantly diversified its import sources, with Russia now accounting for 20% of its total crude oil imports in February. Additionally, India has begun receiving LPG imports from the United States since January 2026, following a one-year contract. The government has directed all LPG refineries to increase production and prioritize domestic supply to ensure adequate availability. Reports of a shutdown at Mangalore Refinery and Petrochemicals Limited were dismissed, with officials confirming normal operations and sufficient stock. Indian refiners, including Mangalore Refinery and Petrochemicals Limited and Hindustan Petroleum, have also returned to purchasing Russian crude cargoes, some of which were previously stranded at sea, aided by a temporary US Treasury waiver. This strategy aims to cushion the domestic market from global shocks and maintain energy security.
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