How India Secured 70% of Its Crude Oil Outside the Volatile Strait of Hormuz

He, however, conceded that the world had “not faced a moment like this in energy history” after the maritime route was effectively closed to commercial shipping for the first time in recorded history.

On commercial LPG ‘shortage’

Puri also sought to assuage concerns over the availability of commercial LPG after hotel and restaurant associations across the country raised alarm.

“OMC field officers and the anti-adulteration cell are coordinating enforcement at the distributor level. The Home Secretary has held a meeting with Chief Secretaries of all states to align state-level administration with the central supply and information framework,” Puri said.

Commercial LPG has been regulated to prevent black marketing, Puri said, “not to penalise the hospitality sector”.

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“Commercial LPG is sold in a completely deregulated over-the-counter market at market prices without any government subsidy. There is no registration system, no booking requirement, no digital authentication and no delivery confirmation mechanism. Any business or individual can purchase cylinders in any quantity at the point of sale, with no government control in normal times… The government has therefore taken the responsible course to regulate this channel with clear priorities and a transparent allocation mechanism.”

What has govt done to handle oil crisis?

Responding to concerns raised by the Opposition over an alleged LPG shortage amid the Middle East conflict, the minister firmly denied any supply crisis saying, ‘no shortage’, have enough supplies of fuel. He stated that India has sufficient availability of petroleum products, including petrol, diesel, aviation turbine fuel (ATF), kerosene and fuel oil and that supply chains for these products are functioning normally.

Puri said the government had moved swiftly to diversify crude sourcing in response to the disruption. Before the crisis, about 45 per cent of India’s crude imports passed through the Strait of Hormuz. However, due to the diplomatic outreach of Prime Minister Narendra Modi, India has secured crude volumes exceeding what the disrupted route could have delivered in the same period. As a result, non-Hormuz sourcing has risen to nearly 70 per cent of the country’s crude imports.

India’s oil import basket

He added that India now sources crude oil from about 40 countries, compared with 27 in 2006–07 to strengthen energy security.

Puri’s remarks came after Congress leader Rahul Gandhi criticised the government in the Lok Sabha, warning that the ongoing conflict involving the United States, Israel and Iran could have far-reaching global consequences. Gandhi had also questioned the Centre over reports of LPG shortages.

In response, Puri said LPG production had been ramped up over the past five days and accused the Opposition of spreading unnecessary alarm. “Despite having no role in causing the West Asia conflict, India has to navigate its consequences responsibly,” he said, urging lawmakers to avoid “rumour-mongering”.

Opposition members protested and raised slogans while the minister was speaking.