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Indian refiners person begun negotiating for further crude cargoes from the U.S., Russia and West Africa to guarantee supplies stay capable successful the lawsuit the West Asia conflict drags connected for a longer period, manufacture officials and analysts said.
Refineries, which person crude lipid into fuels similar petrol and diesel, person deferred planned attraction shutdowns and are maintaining mean processing rates to make buffers that could conscionable the country's request successful the adjacent term, they said.
India imports astir 88% of its crude lipid requirement, with astir fractional of those supplies successful February passing done the Strait of Hormuz, the constrictive oversea lane betwixt Iran and Oman that serves arsenic a cardinal vigor transit way for planetary markets.
Israel-Iran war updates connected March 8, 2026
The caller subject strikes by the U.S. and Israel connected Iran, and Tehran's retaliatory attacks connected U.S. bases successful neighbouring countries arsenic good arsenic Israel, person sharply escalated tensions successful the region, starring to a adjacent halt successful tanker movements done the strategical waterway.
"Non-strait sources are afloat operational and we are sourcing much and much supplies from non-conflict zones," a apical lipid Ministry root said. "Non-strait sources accounted for 60% of supplies successful 2025 which aft the Middle East struggle climbed to 70%."
Indian refiners are tapping crude from West Africa, Latin America and the U.S., helium said, adding the U.S. Treasury Department issuing a 30-day waiver to let the merchantability and transportation of sanctioned Russian lipid that has already been loaded connected vessels to India has opened up different avenue.
The waiver permits the sale, transportation oregon discharge of crude lipid and petroleum products of Russian root that were loaded onto vessels connected oregon earlier March 5, including ships taxable to definite sanctions. The exemption remains valid until April 5, allowing cargoes already successful transit to beryllium completed without violating sanctions restrictions.
There are 120 cardinal barrels of Russian crude connected the water. Of this, arsenic galore arsenic 15 cardinal barrels of Russia-origin crude are sitting connected tankers adjacent to India - successful the Arabian Sea and Bay of Bengal - portion different 7 cardinal Russian crude barrels are idling adjacent Singapore.
Industry sources said Indian refiners person started buying Russian oil.
Reliance Industries, Hindustan Petroleum Corporation Ltd., and HPCL-Mittal Energy Ltd., which had halted purchases of Russian crude pursuing U.S. sanctions imposed past twelvemonth connected Moscow's starring producers Rosneft and Lukoil, person returned to the marketplace to unafraid Russian cargoes, they said.
Before the United States imposed sanctions connected Russia's starring lipid producers Rosneft and Lukoil successful October 2025, Reliance Industries was the largest purchaser of Russian crude, importing much than 5,00,000 barrels per time (bpd) nether a semipermanent proviso statement with Rosneft.
The Oil Ministry authoritative said India ne'er stopped buying Russian lipid - it imported immoderate 1.04 cardinal bpd of Russian crude successful February, down from 1.6-1.8 cardinal bpd levels seen successful 2023-25.
"We are successful a precise comfy presumption arsenic acold arsenic crude and finished products are concerned," helium said, adding the combined inventory tin conscionable the country's request for 50 days.
The state presently holds astir 144 cardinal barrels of crude successful onshore storage, equivalent to astir 30 days of sum astatine 2025 import levels.
Importantly, the supplies are being perpetually replenished, helium said.
India's Strategic Petroleum Reserves person the capableness to screen astir 9.5 days of nett lipid imports. In addition, state-run lipid companies person retention for crude and petroleum products equivalent to 64.5 days of nett imports, taking the country's full retention capableness to astir 74 days of nett imports, according to Petroleum Ministry data.
While India whitethorn beryllium capable to unafraid capable carnal crude done alternate sources, analysts cautioned that the wide outgo operation could worsen owed to higher crude prices, accrued freight and security premiums, and longer shipping routes.
International crude lipid prices person jumped to implicit ₹92 per tube from astir ₹70 erstwhile the U.S. and Israel attacked Iran connected February 28. Liquefied Natural Gas (LNG) prices person much than doubled to ₹24-25 per cardinal British thermal unit.
The higher prices volition adhd to India's import bill, analysts said, adding sourcing from non-Middle Eastern suppliers mean longer shipping and higher freight. Also, security premiums person jumped.
Every ₹10 summation successful crude prices could adhd 20-25 ground points to the user terms scale if passed connected to consumers, oregon widen the fiscal shortage if taxes are chopped to neutralise the impact.
The contiguous interaction volition beryllium a higher import bill, a widening existent relationship shortage and unit connected the rupee.
India, the world's third-largest crude importer, depends connected West Asia proviso for astir fractional of its imports, and the de facto halted tanker postulation successful the Strait of Hormuz has enactment terrible unit connected its supplies. In February 2026, India received 2.8 cardinal bpd crude, accounting for 53% of full imports, from Iraq, Saudi Arabia, the United Arab Emirates, Kuwait and Qatar.
For the world, astir 15 cardinal bpd of crude and 5 cardinal bpd of lipid products passed done the Strait of Hormuz successful 2025.
India's vulnerability to crude flows done the Strait of Hormuz was little astatine astir 41% successful 2025, but has accrued successful caller months arsenic refiners curtailed purchases of Russian crude. Imports from Russia averaged astir 1.15 cardinal bpd successful the archetypal 2 months of 2026, compared with astir 1.7 cardinal bpd successful 2025.
