The government has vowed to take “all steps” to ensure the affordability of petroleum products
New Delhi will ensure the availability and affordability of petroleum products for consumers amid the escalating crisis in the Middle East, its Oil Ministry said on Monday.
The supply situation for crude oil, LPG, and other petroleum products has been reviewed with senior officials from the Oil Ministry and public sector companies, according to a statement.
“We are continuously monitoring the evolving situation,” the Ministry of Petroleum and Natural Gas said in an X post.
In view of ongoing geopolitical developments in the Middle East, the Minister of Petroleum & Natural Gas reviewed the supply situation for crude oil, LPG, and other petroleum products with senior officials from the Ministry and PSUs.
— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) March 2, 2026
New Delhi imports 85% of its oil and nearly half of its natural gas. About half of the country’s oil supplies and 55% of LNG shipments are routed through the vital Strait of Hormuz.
The Middle East countries accounted for about 55% of India’s crude imports, or about 2.74 million barrels per day as of January, according to the Hindu Business Line.
Iran, which holds the world’s third-largest oil reserves and second-largest natural gas reserves, has threatened to target ships passing through the Strait of Hormuz – a critical maritime choke point through which nearly 20% of global oil shipments pass.
“The closing of the Strait of Hormuz will have big implications for India,” Ajay Shrivastava, former Director General of Foreign Trade, told RT India. “It will be difficult to reroute or replace that volume [of oil], especially for Asian economies, especially with sanctions on Russian oil,” he said.
Oil prices could surge to $95 per barrel or even above if the war becomes protracted, he said. “There are no other alternatives. If the war continues beyond a week, it will be really difficult times,” he said.
The impact of this conflict will reflect on energy prices, Omair Anas, an international relations expert with a focus on the Middle East, said in an interview with RT India.
“If this conflict [becomes] prolonged, there will be a crisis in energy supply as well as prices. So its impact is going to be [felt] on India,” he said.
According to Pramit Pal Chaudhuri from the consultancy Eurasia Group, India has close ties with Iran, the UAE, Qatar, Oman, and many Gulf nations, and defines each relationship distinctly. “[India] basically says we will maintain a relationship with each of you with a certain focus,” he said in an interview with RT India.
India is looking to revive large purchases of Russian crude amid the ongoing crisis, just weeks after Washington pressured it to scale down imports, Bloomberg reported on Monday.
