New Delhi: India successfully shielded consumers from supply disruptions triggered by the closure of the Strait of Hormuz earlier this year through diversified sourcing, expanded refining capacity and higher domestic production, Oil Minister Hardeep Singh Puri said on Friday, while outlining the government’s broader strategy to strengthen the country’s energy security.
Addressing an industry event organised by the Confederation of Indian Industry (CII), Puri said India had moved beyond viewing energy security solely through the lens of access to hydrocarbons, citing diversified imports, strategic partnerships, infrastructure expansion and alternative fuels as key pillars of its approach.
“Today, I think we are in the happy situation of being able to say that, as far as India is concerned, we have moved on from that,” he said.
He said India maintained uninterrupted fuel supplies despite disruptions to shipping through the Strait of Hormuz, a key global energy transit route. The Iran war disrupted energy supplies through the strait. Pre-war, India imported as much as half its crude oil from countries using the strait as a transit. Also, 90 per cent of cooking gas LPG and 60 per cent of gas imports passed through the strait.
These supplies were disrupted, but India diversified its sources to prevent any dryout anywhere in the country.
“I can say with a degree of confidence, not one station went dry, not one,” Puri said, referring to the country’s network of more than 1,07,000 fuel retail outlets.
According to Puri, India expanded its crude supply sources from 27 to 41 countries, increased its fuel retail network from about 52,000 outlets in 2014 to around 1,07,000 currently, and broadened city gas distribution coverage from 55 geographical areas to 309.
The minister said domestic LPG production was increased to offset lower imports from Gulf suppliers affected by the disruption.
“We never ran short of crude oil supplies. We always had about 60 days (cover); there was no shortage,” he said.
Puri also said the US had emerged as India’s largest supplier of LPG following the disruption.
“Today, I am happy to inform you that the United States accounts for something like 67 per cent of our LPG imports.”
Looking beyond the immediate supply security, Puri highlighted the government’s recently approved Rs 84,000 crore Samudra Manthan programme aimed at supporting deep-water oil and gas exploration.
“The government is not going to do the drilling. The drilling is going to be done by private players,” he said, adding that the government would support up to 50 per cent of drilling costs or up to Rs 650 crore per well to encourage investment in high-risk offshore exploration.
Puri said India had opened previously restricted offshore acreage for exploration and expected further opportunities under future licensing rounds. He also highlighted the government’s push to expand compressed biogas capacity and said India’s ethanol blending programme continued to make progress.
Turning to recent concerns over ethanol-blended petrol, Puri dismissed suggestions of widespread fuel contamination, saying oil marketing companies had launched large-scale testing before complaints surfaced publicly.
“They found four cases out of 1,07,000 petrol pumps with six crores to seven crores consumers going every day. So obviously, someone out there is trying to place some things out of context.”
Puri said inspection teams carried out extensive checks across the country. He argued that contamination incidents could occur in any fuel or product, but said the findings did not indicate a systemic issue.
The minister also defended the government’s fuel pricing policy, saying excise duty reductions had helped cushion consumers from global volatility.
“In the last four years, if you look at an overall period, prices in India have largely come down. Why? Because the central government, thanks to very bold decision-making by the Prime Minister, decided to cut excise duty on fuel on three occasions in November 21, May 2022, and March 10, 2026.”
He added that while retail petrol and diesel prices had risen modestly over a longer period, excise duty reductions had more than offset those increases.
“Yes, if you look at a slightly larger period, I think petrol prices went up by 4 or 5 per cent… But, if you compare that with the amount of excise duty cut, Rs 10 per litre on petrol and diesel, that’s why India has one of the most affordable fuel rates in the world.”
The minister cautioned that ongoing geopolitical conflicts continued to cloud the global energy outlook despite improvements in supply resilience.
“I think the new global order should be secure, smart, and sustainable.”
He said India has so far been able to insulate itself from external shocks, but warned that geopolitical uncertainty remained.
“So, I think we’ve managed so far. I don’t like sticking my neck out too much because the global turmoil is still going on, but I am confident that with the policies we put in place, we are reasonably confident of meeting those challenges. But the rest, of course, we will have to navigate.”
India is the world’s third-largest energy consumer and crude oil importer, while also ranking among the largest refining nations globally.
The country imports the bulk of its crude oil requirements and has sought to diversify supply sources, expand refining capacity, increase strategic reserves and accelerate domestic exploration as part of its energy security strategy.
It has also expanded ethanol blending in petrol and is promoting compressed biogas and other alternative fuels as part of efforts to reduce import dependence while strengthening energy security.
