Indian oil marketing companies are planning to buy Russian crude amassed in floating storage in Asia as the situation in West Asia escalates. According to a report, officials of the Petroleum Ministry and oil marketing companies have drawn up contingency plans for a crisis in Iran that has all but stopped flows through the Strait of Hormuz, a major global choke point.
It is believed that oil ministry officials are now pushing the Ministry of External Affairs to seek some room for maneuver from the US to import Russian crude. As of late last week, there were 9.5 million barrels of Russian oil sitting in Asian waters.
India imports more than 85% of its domestic oil requirements, and nearly half of its crude oil imports transit through the Strait of Hormuz. In FY25, Iraq, Saudi Arabia, the UAE, and Kuwait (in the Persian Gulf) together accounted for nearly 46% of India’s annual crude oil imports passing through this chokepoint. Moreover, India has recently reduced crude imports from Russia following US pressure and sanctions on two major Russian oil companies — Rosneft and Lukoil — in 2025. 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. In February 2026, it imported 1 million barrels per day.
Moreover, India has other options, including increasing supplies from Russia that follow the Red Sea route. The report also noted fast-tracking supplies from Venezuela and pushing domestic producers to raise output. In case of further escalation, the government may also consider curbing refined fuel exports to ensure enough supply for domestic consumers. It can prioritise household gas and piped supplies, potentially directing industrial users to switch fuels.
The government may also ask private giant Reliance Industries Ltd to divert more fuel to the domestic market, while other refiners tweak output to maximise liquefied petroleum gas production at the expense of products such as naphtha. India can also tap its strategic petroleum reserve and push domestic producers to raise output, the people said, asking not to be named as the discussions are not public.