According to a senior government official, India is taking proactive measures to diversify its crude oil and gas import sources. This is in response to supply disruptions caused by the Strait of Hormuz issue and to ensure the country’s energy security.
India is increasing its sourcing alternatives across global markets to ensure energy security, according to Randhir Jaiswal, a spokeswoman for the Ministry of External Affairs.
“Our policy at present is to diversify our sources from across the world,” Jaiswal stated, emphasising that India is open to receiving assistance from other energy-producing regions.
According to the official, 11 ships flying the Indian flag are still stuck in the Persian Gulf, while 14 ships have made it through the Hormuz Strait and are heading back to India.
Indian refiners are diversifying their crude oil sources to counteract supply interruptions in West Asia by increasing their purchases from Russian and African producers like Angola and Nigeria. In order to keep supplies steady, refiners have boosted their sourcing from Latin America and Africa, according to trade data.
The source from India’s Petroleum Ministry emphasised that long-term contracts have ensured enough crude volumes, and that commercial viability and supply availability are still the primary drivers of oil procurement decisions in the country.
To assist local refiners in coping with rising global energy prices, India—the world’s third-largest oil importer—has substantially boosted its acquisitions of cheap Russian crude in the past several years.
In spite of US sanctions targeting specific Russian energy companies and shipping routes, temporary policy easing and changing market conditions have allowed Indian refiners to resume stronger imports.
Kpler predicts that in May, Russia would continue to be India’s primary oil supplier, with daily imports of about 1.9 million barrels. This would further solidify Russia’s position as India’s primary oil supplier.
With benchmark Brent crude rising above $100 a barrel owing to geopolitical tensions and supply worries associated with the interruption of the Strait of Hormuz, there has been a boom in alternative sourcing as a result of the increased volatility of the global energy market.
With diversification, long-term supply agreements, and flexible procurement tactics helping to safeguard domestic energy security throughout the continuing West Asia crisis, officials in India believe that there is no acute crude shortage.
Image Credit: Free Press Journal
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