ThePrint ThePrintPOD: What closure of Strait of Hormuz means for India’s oil & gas supply
Mar 2, 2026
A deep look at how closure of the Strait of Hormuz would affect India’s oil and gas flows. Covers where Gulf crude comes from and why most transit heads to Asia. Discusses trade-offs of diversifying away from Russia and the immediate LPG vulnerabilities. Notes India’s strategic petroleum buffer and why a long closure is unlikely.
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India's Rising Dependence On Hormuz Oil
- India now sources roughly 50% of its crude imports via the Strait of Hormuz, raising vulnerability to regional disruption.
- Kepler data shows India averaged ~2.6 million barrels per day from Gulf countries, making Gulf logistics a structural advantage over longer Atlantic voyages.
Diversification Raises Freight And Time Costs
- Diversifying away from Gulf supplies increases voyage times to 25–45 days versus 5–7 days from the Gulf, raising freight exposure and supply-chain length.
- Kepler's Sumit Ritolia notes Russian cargoes and floating storage near Indian ports provide near-term elasticity if Gulf flows tighten.
LPG Supplies Are More Fragile Than Crude
- LPG is a more acute vulnerability than crude for India because 80–85% of LPG is imported and most transits the Strait of Hormuz.
- Kepler warns India lacks large strategic LPG reserves, so logistical constraints would bite earlier than crude price effects.