India's Energy Security Threatened as West Asia Tensions Disrupt Key Oil Routes

India's energy security is under threat due to growing tensions in West Asia. The Strait of Hormuz, which carries about one-fifth of global energy supplies, has been blocked for months now, severely disrupting a key route for global energy supplies.

The country's dependence on imported oil and gas leaves it vulnerable to disruptions in global supply and sharp swings in energy prices. In 2024-25, India's overall dependence on imported primary energy was about 42%, with crude oil import dependence at about 89% and natural gas at about 49%. For India, the challenge is not just to find alternative suppliers but to build multiple routes and logistical options that can keep supplies moving during a regional crisis.

Experts say India needs to diversify its energy supply chains by building strategic buffers through Strategic Petroleum Reserves (SPR) and commercial inventories. The UAE has agreed to increase its crude oil storage in India's SPR to up to 30 million barrels, while Oman's ports could provide alternative transhipment, storage, and bunkering hubs outside the Strait of Hormuz.

However, experts caution that moving away from Gulf supplies could come at a higher cost. The re-routing and sourcing from other countries come with their own set of concerns such as high risk premiums, higher voyage time, which can be expected to have a direct bearing on the affordability element.