india-s-oil-stocks-adequate-even-if-hormuz-closes-assures-puri

India is keeping a close eye on oil supply routes as Tehran mulls closing the Strait of Hormuz, a move that could unsettle global energy trade and spike fuel prices. The Union government, however, has said fuel supplies remain unaffected and well-stocked. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri stated that India has diversified its energy procurement channels in recent years, with many now bypassing the strategic chokepoint.

 

“Under the leadership of PM Narendra Modi ji, we have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now,” Puri said in a post on X.

 

We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks. Under the leadership of PM @narendramodi Ji, we have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait…

— Hardeep Singh Puri (@HardeepSPuri) June 22, 2025

 

The Strait of Hormuz, which separates the Persian Gulf from the Arabian Sea, is just 33 km wide at its narrowest point but accounts for nearly 20 per cent of the world’s oil shipments and a significant portion of global LNG trade.

Also read: Oil prices jump over 2%, Asian markets plunge as US attacks Iran

 

“Our oil marketing companies have supplies of several weeks and continue to receive energy supplies from several routes. We will take all necessary steps to ensure stability of supplies of fuel to our citizens,” Puri added.

 

Iran’s Supreme National Security Council is expected to make a final decision on whether to close the strait, seen as a response to the recent US-led airstrikes on three Iranian nuclear facilities.

 

While the Centre’s immediate outlook remains calm, senior officials have acknowledged the sector’s vulnerability.

 

Sources informed that crude oil is “extremely sensitive” to geopolitical shocks. “Even limited disruptions can significantly increase global crude prices,” one official said, warning that a week-long closure of the strait would “jolt the global economy” and expose India to serious price shocks.

 

Another senior official added: “We think the situation will be short-lived and may return to normalcy.” However, global uncertainty persists, especially as crude supply alternatives hinge on discounts and dynamic price trends.

 

India has increased its crude imports from Russia in recent years to reduce reliance on West Asian routes. However, officials said the benefits from Moscow depend on continued price advantages.

 

Should international crude prices cross $105 per barrel, the government may revisit excise duty cuts on fuel—last adjusted in May 2022.