India Prepares Oil Contingency Plan Amid Iran Disruptions: Export Curbs, More Russian Crude, LPG Rationing Eyed

India is developing a contingency plan to address potential fuel shortages caused by ongoing disruptions in the Strait of Hormuz. The government is exploring options such as limiting fuel exports, increasing imports of Russian crude oil, and implementing demand management strategies, including LPG rationing. These proactive measures aim to ensure energy security and mitigate the impact of supply chain instability, safeguarding the nation's fuel supply amidst geopolitical tensions affecting critical shipping routes.

India is proactively formulating a comprehensive oil contingency plan to safeguard its energy security against potential fuel shortages, primarily stemming from persistent disruptions in the Strait of Hormuz. This critical maritime choke point, vital for global oil transit, faces ongoing instability, particularly concerning Iran, which poses significant risks to the global crude oil supply chain. The Indian government's strategy is multi-faceted, addressing both supply augmentation and demand management. On the supply side, the plan includes evaluating the possibility of limiting the export of refined petroleum products to ensure adequate domestic availability. A crucial aspect involves diversifying crude oil imports, with a heightened focus on increasing shipments from Russia, thereby reducing reliance on potentially vulnerable traditional sources and routes. Simultaneously, demand-side management measures are under active consideration to optimize fuel consumption within the country. Among these, the potential rationing of Liquefied Petroleum Gas (LPG) is being explored as a measure to ensure equitable distribution and manage overall demand. These strategic initiatives underscore India’s commitment to building resilience against geopolitical volatilities and ensuring a stable and secure energy supply for its growing economy and vast population. This forward-looking approach highlights the nation's readiness to navigate complex global energy dynamics and mitigate potential crises.