Any further escalation leading to the closure of the Strait of Hormuz could significantly disrupt India’s energy supplies, affecting not only crude oil but also critical LPG imports. The route, which accounts for nearly 20% of the world’s crude supply, remains a major global chokepoint.
For India, dependence is particularly acute in the case of LPG, with around 80–85% of its LPG imports transiting through the Strait of Hormuz from Gulf suppliers.
Unlike crude oil, India does not maintain strategic LPG reserves, making the country more vulnerable to any disruption in supplies.
According to commodity market analytics firm Kpler, the Strait of Hormuz is a key conduit for India’s energy imports. Around 85% of LPG supplies are routed through it. LNG shipments account for about 55%, while crude oil imports routed through the Strait have averaged around 50% over the past five years, from 2021 to 2025.
“India imports ~80–85% of its LPG needs, with the majority sourced from Gulf suppliers — almost entirely transiting Hormuz. Unlike crude, India does not maintain strategic LPG reserves of comparable scale, making LPG flows more logistically vulnerable,” said Sumit Ritolia, Lead Research Analyst, Refining & Modeling at Kpler, in a LinkedIn post.
India, the world’s third-largest oil buyer, consumes about 5.5 million barrels of crude oil per day, of which nearly 1.5–2 million barrels per day pass through the Strait of Hormuz.
India has recently reduced crude imports from Russia following US pressure and sanctions imposed in 2025 on two major Russian oil companies — Rosneft and Lukoil. In January, India imported 1.14 million barrels per day (bpd) from Russia, compared with 1.03 million bpd from Iraq and 774,000 bpd from Saudi Arabia.
“Over the past two to three months, India’s dependence on Middle Eastern barrels has increased as refiners have pivoted away from a portion of Russian volumes. As a result, the relative weight of Gulf-origin crude in India’s import basket has risen, increasing short-term sensitivity to any disruption in Hormuz transit,” Ritolia said.
India consumed 28 million metric tonnes of LPG between April 2025 and March 2026 for domestic use, marking a 7.8% increase during the period. Nearly 80% of LPG is sourced from Qatar, followed by the UAE, Saudi Arabia and Kuwait.
To diversify supplies, India recently signed contracts to import around 2.2 million tonnes per annum (MTPA) of LPG from the US, accounting for nearly 10% of its total annual LPG imports.
In the LNG segment, Petronet LNG Ltd has extended its long-term contract with QatarEnergy to purchase 7.5 million tonnes annually for another 20 years. Additionally, Abu Dhabi National Oil Company Gas (ADNOC Gas) signed a 10-year LNG supply agreement with Hindustan Petroleum Corporation Limited in January, valued between $2.5 billion and $3 billion.
According to Kpler, in the event of escalation, the immediate impact is more likely to be price-driven, higher Brent crude prices, increased freight rates and rising insurance premiums, rather than an immediate disruption in physical supplies. Crude flows could be partially buffered through strategic petroleum reserves (SPR), commercial inventories and potential Russian supplies.
“A prolonged and/or widening conflict involving several oil and gas producers and the Strait of Hormuz could adversely impact global crude oil and LNG supplies and raise energy prices globally. In FY2025, about 50% of India’s crude oil and 54% of LNG imports were routed through the Strait of Hormuz. While crude oil could be sourced from alternate locations such as the US, Africa and South America, elevated energy prices could lead to a soaring import bill. Additionally, higher crude prices would moderate marketing margins and profitability of oil marketing companies,” said Prashant Vasisht, Senior Vice President and Co-Group Head at ICRA.
