- 1.5 Million Barrels Daily at Risk Through Hormuz Route.
- India May Curb Fuel Exports to Safeguard Domestic Needs.
- Reliance, Nayara Handle 82% of India’s Product Exports.
India is gearing up with contingency plans to tackle any possible disruptions to oil shipments passing through the Strait of Hormuz, which is a vital chokepoint for the global oil trade. With rising tensions between Iran and Israel, Oil Minister Hardeep Puri has reassured that India has diversified its crude sources and built up enough domestic stockpiles to withstand any potential blockade, reports gCaptain.
Alternate Crude Supply Plans in Place
Oil Minister Hardeep Puri stated that India is ready to source crude from outside the Persian Gulf if necessary. Speaking to NDTV, he said, “We have enough stocks” and emphasised, “We have enough diversified supplies” of crude oil. He added, “Even if there were to be disruption, we can source it from alternate sources.”
Strategic Importance of the Strait
The Strait of Hormuz is a vital maritime corridor that facilitates nearly a quarter of the world’s oil trade, linking the Gulf to the Indian Ocean. While Iran has previously threatened to block the strait during conflicts, Puri said there is currently “no sign of that happening.” He added, “I don’t think this is something we are unduly worried about.”
India’s Oil Dependency on the Hormuz Route
India consumes about 5.5 million barrels of oil daily, of which 1.5 million barrels transit through the Strait of Hormuz. Puri noted that global crude supply remains stable, saying, “It isn’t supply but prices that are a concern.”
Refined Product Export Strategy
India is also considering limiting its refined product exports to maintain domestic availability. Puri said, “It could reduce those shipments if needed to maintain sufficient stockpiles at home.”
Current Export Volumes
India is making quite a name for itself as a net exporter of petroleum products. Major players like Reliance Industries Ltd. and Nayara Energy are busy shipping their goods to various destinations, including the UAE, Singapore, the US, and Australia. This year alone, India has been exporting an impressive average of 1.3 million barrels of products each day, with Reliance and Nayara together responsible for a whopping 82% of those total shipments, according to data from Kpler.
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Source: gCaptain
