The Indian government has activated what officials are calling “Plan B” for the country’s oil supply, ensuring that petrol, diesel, and LPG supplies remain unaffected despite escalating Middle East tensions from the US-Iran War. The Petroleum Ministry confirmed on March 6, 2026 that India faces no immediate fuel shortage risk.
India’s Oil Dependency Challenge
India imports approximately 85-87% of its crude oil needs, making it highly vulnerable to Middle East supply disruptions. Before the US-Iran War began, approximately 20-25% of India’s crude imports came from the Gulf region, including Iraq (the largest supplier), Saudi Arabia, UAE, and Kuwait.
The Strait of Hormuz, through which much of this oil transits, remains open but under threat from Iranian naval activities.
India’s Plan B: Diversification Strategy
The government has implemented several measures to safeguard energy security:
- Strategic Petroleum Reserves: India has activated all three of its strategic petroleum reserves located at Vishakhapatnam, Mangaluru, and Padur, which together hold approximately 5.33 million metric tonnes of crude oil — enough for roughly 9.5 days of national consumption.
- Alternative Suppliers: India has fast-tracked negotiations with Russia, Kazakhstan, Mexico, Venezuela, and Angola for emergency oil supply contracts. Russian crude, which India has been importing at discounted rates, now accounts for 35% of imports.
- Spot Market Procurement: Indian oil companies are actively buying crude on global spot markets, taking advantage of temporarily available non-Middle East cargoes.
- Refinery Flexibility: Indian refineries have been instructed to optimize their crude blend to accommodate more diverse crude grades.
LPG and Natural Gas
For LPG and piped natural gas, India relies heavily on Qatar and UAE. The government is in discussions with US LNG suppliers and Australia’s Woodside Energy for expedited deliveries.
Petrol-Diesel Price Hike?
Despite the supply security measures, rising crude costs are putting pressure on domestic fuel pricing. Petroleum Minister Hardeep Singh Puri stated that a petrol-diesel price review will be conducted if crude remains above $100 per barrel for a sustained period.
Conclusion
India’s proactive Plan B activation demonstrates robust energy security planning. While no immediate shortage is expected, citizens should monitor official announcements closely as the Middle East situation continues to evolve.