Hormuz Disruption Cuts India's Energy Supplies by 20% and 16%

The disruption in the Strait of Hormuz has caused significant disruptions to global energy supplies. According to S&P Global, India's crude oil imports have been cut by 20%, while LNG shipments have fallen by 16%. The Asian economies are bearing the brunt of this shockwave, particularly emerging and developing nations with limited financial capacity to absorb surging prices.

India relies heavily on the Strait of Hormuz for its oil imports, making it one of the most exposed countries. Indian refiners have adopted a first-principles approach to keep fuel moving, using commercial pragmatism and sourcing flexibility. The government has also launched its Samudra Manthan program, which aims to transform the upstream energy sector's mandate from conventional balance-sheet financing to active nation-building and resource security.

Dave Ernsberger, President of S&P Global Energy, emphasized the severity of the supply shock: 'The disruption to energy supplies through the Strait of Hormuz has been a severe test of energy security for high-growth Asia.' He noted that India's reliance on the Strait of Hormuz has resulted in reductions in crude and LPG of 20% and 12%, respectively, as well as a drop in LNG of 16%.