India is showing little urgency to return to large-scale crude purchases from the Middle East, even after the reopening of the Strait of Hormuz eased earlier supply concerns. Refiners in the country reportedly have enough crude stock to last for about two months, giving them breathing room and reducing immediate pressure to rush back into Gulf markets.
Despite producers in the Middle East actively reaching out to Indian buyers to restart shipments under long-term contracts, response from Indian refiners has been cautious. According to industry sources cited in a Bloomberg report, many buyers are holding back, while government approval is still pending for Indian tankers to resume loading crude from the Persian Gulf. The situation highlights how strategically careful India has become in balancing energy security with market volatility.
Historically, India has been one of the largest importers of Middle Eastern crude due to proximity and competitive pricing. However, shifting geopolitical risks and supply disruptions have pushed the country to diversify its energy sources. In recent months, India increased purchases of Russian crude, taking advantage of discounted pricing and sanction-related market shifts, which has reshaped its traditional supply mix.
At the same time, India’s overall energy imports continue to rise. Data from the oil ministry shows crude oil imports climbed 7.5% in May, while LNG imports jumped 16% compared to the previous month. The country’s total energy import bill surged by nearly 82% year-on-year, reaching around $18.7 billion, driven largely by higher global energy prices and increased demand across sectors.
To manage the pressure on supply and rising costs, the government has encouraged energy conservation measures and allowed fuel price adjustments at the retail level for the first time in years. Consumers have already seen multiple fuel price hikes, reflecting the broader strain on India’s energy economy even as it continues to diversify its sources of crude.
source: oilprice