India’s Russian crude imports surge 90% in March, as disruptions in the Strait of Hormuz significantly reshaped the country’s oil sourcing strategy. The sharp increase highlights India’s shift toward alternative suppliers amid escalating geopolitical tensions in West Asia.

Key Highlights

• India’s Russian crude imports surge 90% in March as Hormuz disruption reshapes oil sourcing strategy
• LPG imports fall 40%, LNG shipments decline sharply as India diversifies energy sources amid crisis

India’s Russian crude imports surge as refiners rapidly adjust procurement strategies to ensure uninterrupted supply. The shift comes at a time when traditional oil flows from the Middle East face severe constraints due to ongoing conflict and shipping disruptions through the critical Hormuz chokepoint.

The Strait of Hormuz, a key global energy corridor, has witnessed major disruptions due to geopolitical tensions, impacting oil shipments from major Gulf producers. Nearly 2.5–2.7 million barrels per day of India’s crude imports typically pass through this route, making it highly vulnerable to supply shocks. 

India, the world’s third-largest oil importer, has been actively diversifying its sourcing strategy. The country now imports crude from around 40 different nations, reducing reliance on any single region.

Kpler analyst Sumit Ritoia said, "Some relief came from Middle Eastern producers rerouting supplies through pipelines that bypass Hormuz, including Saudi Arabia’s East-West pipeline and the UAE’s Habshan-Fujairah line. These alternative routes helped sustain partial flows despite maritime bottlenecks. Russian oil purchases are likely to continue into April, with potential additional supplies from Iran and Venezuela expected to ease supply risks."

Also Read: India FY27 Growth Outlook Under Pressure Amid West Asia Oil Crisis

Disruptions in the Strait of Hormuz severely impacted India’s fuel supply chain, leading to a sharp 40% drop in LPG imports and a decline in LNG shipments, prompting the government to seek alternative sourcing options. LNG imports from QatarEnergy plunged by 92% after a force majeure declaration, compounding supply challenges caused by the Hormuz crisis, though the deficit was partially offset by increased shipments from the US, Oman, Angola, and Nigeria. To manage the shortfall, India ramped up domestic LPG production and restricted supplies to commercial and industrial users, ensuring continued availability for over 33 crore household consumers dependent on cooking gas.