India's Energy Security at Risk Amid West Asian Tensions
India's heavy dependence on imported oil and gas has left its economy vulnerable to disruptions in global supply and sharp swings in energy prices. The recent flare-up in West Asia involving Saudi Arabia and Yemen's Houthi rebels has highlighted the risks for India of relying on a limited number of routes and infrastructure for its energy imports.
According to experts, India needs to build a multi-route energy strategy, diversify crude and gas suppliers, and expand storage and port infrastructure. The country's overall dependence on imported primary energy was about 42% in 2024-25, with crude oil import dependence at about 89% and natural gas at about 49%, while coal import dependence was about 18%.
Experts agree that India cannot fully replace Gulf supplies in the near term due to higher costs, longer transit times, and compatibility issues with its existing refining and energy infrastructure. However, they suggest rerouting Gulf-origin crude through the Mediterranean Sea or tapping cargoes already at sea through spot trading, swaps, and other forms of international arbitrage.
India needs to expand strategic buffers through Strategic Petroleum Reserves (SPR) and commercial inventories. The UAE and Oman can provide another layer of resilience to India's energy supply chains, with Fujairah emerging as an important oil storage and bunkering centre, while Oman has ports including Duqm and Salalah that could potentially support alternative maritime routes.