While India can find alternative markets to get its crude oil cargoes, getting LPG amid rising tensions in the Middle East region would be extremely difficult, say industry executives. New worries have arisen following renewed instability in the Middle East, especially involving Iran and the threat posed to energy infrastructure and shipping through the Strait of Hormuz.

These concerns come at a time of increasing geopolitical tensions in the Middle Eastern region, and this is coupled with worries over the security of transporting energy resources through the Strait of Hormuz, which is one of the world’s busiest oil and gas shipping routes for oil and gas transportation in the world.

Industry executives said that Indian refiners have diversified their crude procurement strategy in recent years by purchasing more from countries like Russia, the US, West Africa and Latin America. This diversity in supply sources will give them more options if there are disruptions in crude delivery from the Gulf region.

However, they were careful to note that there is a marked difference when it comes to LPG. They noted that a considerable proportion of India’s LPG imports still comes from Gulf countries, and hence there are limited alternative suppliers if the supply is disrupted for an extended period of time. In contrast to crude oil, the global LPG market is highly concentrated.

According to industry executives, any interruption to shipping through the Strait of Hormuz would likely have a greater impact on LPG availability than on crude oil supplies. Reduced availability could also increase import costs and create additional pressure on the domestic fuel market.

As India imports a significant share of its crude oil and LPG requirements, energy security has been a major concern for India. Although India has diversified its crude oil import sources of crude oil and has developed collaborations with a number of suppliers, more needs to be done with regard to LPG.

Industry executives also stressed the significance of expanding strategic petroleum reserves and improving energy infrastructure in order to deal with any future disruption in supplies. It is also stressed that increased diversity of imports, along with greater storage capabilities, would enable India to mitigate risks posed by geopolitical uncertainties.

In view of the growing volatility in international energy markets, India's diversified crude oil import strategy is seen as flexible, although ensuring reliable LPG supplies may need careful planning and diversification of sources.