What Happened
- India imported nearly 91% of its crude oil requirement in February 2026 — a historic high — according to government data released in April 2026.
- West Asia's share in India's total crude oil imports rose to approximately 54% just before the outbreak of the Iran-Israel-US conflict in 2026.
- Iraq overtook Russia as India's top crude oil supplier in February 2026, with imports from Iraq rising to ~1.18 million barrels per day; Saudi Arabia was the second-largest supplier at ~998,000 barrels per day.
- Imports from Russia declined by about 32% in February 2026 after a sustained period where Russia accounted for roughly one-third of India's oil imports (2024–2026).
- The closure of the Strait of Hormuz during the West Asia conflict raised alarm for India's energy security, as an estimated 40% of India's crude oil imports and a large share of LPG supplies transit through the strait.
Static Topic Bridges
India's Energy Import Dependence
India is the world's third-largest consumer and importer of crude oil, meeting nearly 87–91% of its oil needs through imports. The country's primary oil source regions are the Persian Gulf (Iraq, Saudi Arabia, UAE, Kuwait) and, more recently, Russia. The concentration of imports from politically volatile regions makes energy security a key strategic concern.
- India's crude oil import bill is one of the largest contributors to its current account deficit.
- A 10% rise in global crude prices typically adds $15–17 billion to India's import bill annually.
- India has strategic petroleum reserves (SPR) at Visakhapatnam, Mangaluru, and Padur with a combined capacity of ~5.33 million metric tonnes — roughly 9.5 days of consumption cover.
Connection to this news: The historic 91% import dependency in February 2026, combined with West Asia's 54% share, illustrates exactly why any disruption in the Persian Gulf directly threatens India's oil supply and macroeconomic stability.
Strait of Hormuz and Chokepoints
The Strait of Hormuz, between Iran and Oman, is the world's most critical oil chokepoint, handling approximately 20% of global oil and LNG trade. India's Petroleum and Natural Gas ministry has emphasised diversification away from Gulf sources, but progress remains slow.
- About 17–21 million barrels per day of oil passed through the Strait of Hormuz before the 2026 conflict.
- Alternative supply routes for Gulf oil are extremely limited — the Strait has no viable bypass for most tankers.
- India began importing from Russia (via Indian Ocean routes) post-2022 to reduce West Asia dependence, but West Asia still dominates.
Connection to this news: The effective closure or disruption of the Strait in 2026 directly threatened supply chains for India, underscoring the strategic vulnerability inherent in India's 54% West Asia dependence.
India's Energy Diplomacy
India's "multi-vector" energy diplomacy involves maintaining strong ties with OPEC producers (Saudi Arabia, UAE, Iraq) and non-OPEC suppliers (Russia, USA, Canada). India's strategic autonomy in energy is backed by its refusal to join Western sanctions on Russian oil post-2022.
- India joined the International Energy Agency (IEA) as an Association member in 2017.
- India has Long-Term LNG contracts and equity oil investments in fields in Russia (Sakhalin), UAE, and Africa.
- India-Gulf Cooperation Council (GCC) FTA negotiations have been ongoing, partly driven by energy security considerations.
Connection to this news: The 2026 Iran war exposed the limits of India's energy diversification and intensified calls for faster domestic energy transition (solar, hydrogen) and expanding strategic reserves.
Key Facts & Data
- India's crude oil import dependency: ~91% of total requirements as of February 2026 (historic high)
- West Asia share in imports: ~54% (up from earlier levels)
- Iraq: India's top supplier in February 2026 (~1.18 million barrels/day)
- Russia: ~1/3 of India's oil imports during 2024–2026, declined sharply in February 2026
- Strategic Petroleum Reserve capacity: ~5.33 million metric tonnes (about 9.5 days of consumption)
- Strait of Hormuz: ~20% of global oil and LNG passes through it
- India is the world's 3rd largest crude oil consumer and importer