What Happened
- Heightened geopolitical risk in the Strait of Hormuz — triggered by the 2026 US-Israel military strikes on Iran and Iran's retaliatory threats to block the strait — is threatening India's petroleum coke (pet coke) imports.
- India imports approximately 10.7–12 million tonnes of pet coke annually, with over 70% of the cement industry's fuel requirement met through this material. Much of this comes from Gulf refineries routed through the Strait of Hormuz.
- Tanker traffic through the Strait of Hormuz dropped by approximately 70% following Iran's Islamic Revolutionary Guard Corps (IRGC) issuing warnings prohibiting vessel passage, raising freight costs and supply uncertainty sharply.
- The disruption is expected to push up cement production costs by a minimum of ₹60 per bag, with broader inflationary implications for construction-sector input costs.
Static Topic Bridges
Strait of Hormuz — Strategic Chokepoint
The Strait of Hormuz is a narrow waterway between Iran to the north and Oman and the UAE to the south, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. It is one of the world's most critical maritime chokepoints, through which approximately 20% of global oil supply and a significant share of liquefied natural gas (LNG) transits daily.
- Width at its narrowest: approximately 33 kilometres (21 miles), with two 3.2-km wide shipping lanes.
- About 17–18 million barrels of oil per day (roughly 20% of global consumption) pass through the strait.
- Iran has repeatedly threatened to close the Strait of Hormuz during periods of tension — the 2026 crisis is the most acute materialisation of this threat in recent years.
- India imports approximately 60% of its crude oil from the Middle East, with significant volumes transiting through Hormuz.
- Qatar and UAE together account for ~53% of India's LNG imports — also Hormuz-dependent.
Connection to this news: Pet coke is a byproduct of crude oil refining, produced in large volumes by Gulf refineries. With Hormuz tanker traffic dropping 70%, both the fuel source (crude oil refining disruption) and the shipping route for pet coke exports to India are simultaneously affected.
Petroleum Coke (Pet Coke) and India's Cement Industry
Petroleum coke is a carbon-rich solid byproduct generated during the oil refining process. It has a very high calorific value (~35 MJ/kg, compared to coal at ~24–25 MJ/kg), making it an efficient and cost-effective industrial fuel. India's cement industry — the world's second largest by capacity — is the primary consumer of imported pet coke.
- India's cement industry capacity: approximately 600 million tonnes per annum (MTPA), making it the world's second largest.
- Pet coke provides over 70% of fuel requirement for cement kilns due to its high heat value and cost competitiveness.
- India imported approximately 10.67 million tonnes of pet coke in 2025, primarily from the US, Venezuela, and Gulf countries.
- An Aluminium industry quota for raw petroleum coke also exists under India's import policy (administered under the Ministry of Commerce).
- The South Indian Cement Manufacturers Association (SICMA) has flagged cost increases of at least ₹60 per bag of cement due to fuel cost surges.
Connection to this news: The Strait of Hormuz crisis creates a dual shock for Indian cement makers — reduced supply availability and higher freight costs simultaneously, threatening to pass costs on to the construction sector at a time of large infrastructure expansion.
India's Energy Import Vulnerability and Diversification Efforts
India's heavy dependence on the Gulf region for energy imports is a recurring strategic vulnerability. Approximately 85% of India's crude oil needs are met through imports, and a significant portion of LNG, pet coke, and fertilizer raw materials also originate from Hormuz-adjacent states. India has been working to diversify energy sources — including from Russia (post-2022 Ukraine war) and the US — but Gulf dependence remains structurally high.
- India's crude oil imports from Russia rose sharply post-2022 to approximately 35–40% of total imports — reducing Middle East share but not eliminating Hormuz exposure.
- India has signed long-term LNG agreements with the US (from Henry Hub-linked sources) to reduce Qatar/UAE dependence.
- The Indian Ocean Region (IOR) is central to India's strategic calculus — freedom of navigation through chokepoints like Hormuz, Malacca, and Bab-el-Mandeb is vital to India's energy and trade security.
- India's Strategic Petroleum Reserves (SPR) capacity: approximately 5.33 million metric tonnes at three underground facilities (Vishakhapatnam, Mangaluru, Padur).
Connection to this news: The Hormuz crisis underscores the urgency of India's energy diversification strategy and its capacity to absorb supply shocks — pet coke being just one of several commodities whose supply chain passes through this single geopolitical flashpoint.
Key Facts & Data
- India's annual pet coke imports: ~10.7–12 million tonnes
- Cement industry's fuel dependence on pet coke: over 70%
- Tanker traffic through Hormuz: dropped ~70% following Iranian IRGC warnings (2026)
- Impact on cement prices: minimum ₹60 per bag increase (SICMA)
- India's crude oil imports from Middle East: ~60% of total
- India's LNG imports from Qatar + UAE: ~53% of total
- Strait of Hormuz width (narrowest): ~33 km; shipping lanes: 2 × 3.2 km
- Oil transiting Hormuz daily: ~17–18 million barrels (~20% of global supply)
- India's crude oil import dependence: ~85% of total consumption
- Strategic Petroleum Reserves capacity: ~5.33 million metric tonnes (3 facilities)
- India: world's second largest cement producer by capacity (~600 MTPA)