Jun 24, 2025 05:55 AM IST

A closure of the Strait of Hormuz might have an effect on 40% of crude, 50-60% of LNG imports

Rising worldwide oil costs might not instantly lead to a rise in petrol, diesel and cooking fuel costs in India, and Indian shoppers are unlikely to face provide disruptions even when Iran closes the Strait of Hormuz, authorities officers accustomed to the matter claimed.

India is much less depending on the Gulf area for crude oil. (HT Photo)

India depends on diversified power sourcing and will prohibit exports of any refined petroleum product in case of home scarcity, they added, asking to not be named.

The worth the Indian basket soared by about 19% to $77.34 a barrel (of crude oil) on Friday as in comparison with little over $65 per barrel earlier than the Israel-Iran conflict — and the US bombing of Iran is more likely to push costs additional north — however India’s common crude oil worth within the month of June (as on June 23) was $69.78 a barrel, which remains to be manageable, the officers stated. State-owned oil advertising and marketing corporations (OMCs) did make some further earnings when common crude oil costs had been low, so they might take in will increase in worldwide crude charges as much as $80, they added.

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India is much less depending on the Gulf area for crude oil, the officers stated. India now sources giant portions of crude from about 30 nations, together with Russia, the US, South America and African nations.

To make sure, India nonetheless sources round 40% of the crude it imports from West Asia, and analysts say a closure of the strait might have an effect on 40% of crude and 50-60% of LNG imports.

India is the world’s third largest crude oil shopper after the US and China. It imported 232.7 million tonnes of crude value $157.5 billion in 2024-25 . The nation imports over 88% of crude oil it processes and likewise exports varied refined merchandise. Being a refinery hub within the South Asian area, India additionally exports surplus petroleum merchandise similar to aviation turbine gasoline, petrol and diesel. In FY25, it exported 61 million tonnes of petroleum merchandise value $57.3 billion.

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“If Iran closes the Strait of Hormuz, shortages may very well be met within the short-term by means of exports restriction,” one of many officers stated. An extended closure might trigger issues, although.

On cooking fuel (also called home liquefied petroleum fuel), a second official stated state owned corporations similar to Oil and Natural Gas Corp (ONGC), Gail India, Indian Oil Corporation and Bharat Petroleum Corporation are producing sufficient to satisfy the home necessities.

The second official acknowledged that India’s LNG imports “ may very well be affected as about 60% of India’s pure fuel imports go by means of Hormuz”, however added that Iran was unlikely to shut the strait as a result of it might hit Iran’s buddies similar to “China, probably the most”.

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“The affect can be largely on South Asia and Pacific areas similar to China, Japan, India, Korea, Taiwan, Philippines and Singapore, who’re main patrons of oil and LNG from West Asia” stated SC Sharma, former officer on particular obligation on the erstwhile Planning Commission.

He added that India additionally has about 80 days of oil and oil merchandise saved in several types of storages to maintain short-term provide blips.