Russia’s Energy Offer
Russia, which has become India’s largest crude supplier in recent years following Western sanctions, has indicated its willingness to further ramp up oil exports to India. Moscow can offer crude at discounted prices compared to spot market levels, providing India with a critical buffer against Gulf supply disruptions.
India’s Energy Vulnerability
India imports over 80% of its crude oil requirements, with the Gulf region historically being its primary source. With the Strait of Hormuz partially disrupted and oil prices surging, India’s energy security is under acute stress. Any prolonged conflict in the Gulf could translate into higher petrol, diesel, and LPG prices for Indian consumers.
Strategic Significance of Russia-India Energy Ties
Russia-India energy cooperation has deepened significantly since 2022. India has been purchasing Russian crude at significant discounts, providing a major economic benefit. The Gulf crisis has now made Russia an even more strategically important energy partner for India, giving New Delhi greater leverage in its energy diversification strategy.
India’s Strategic Petroleum Reserve
India has also been directed by the petroleum ministry to consider drawing down its strategic petroleum reserves if the crisis extends significantly. India maintains strategic petroleum reserves at underground rock caverns in Visakhapatnam, Mangalore, and Padur, capable of providing approximately 9-10 days of emergency cover.
The Press of Asia will continue tracking India’s energy security situation as the Middle East conflict evolves.