The latest directive by US President Donald Trump to block vessels to and from Iranian ports is unlikely to have an immediate impact on India’s crude oil and LNG supplies, though some disruption to LPG shipments from the Persian Gulf nation is expected.
Over the past 45 days, India has reduced its dependence on crude oil imports routed through the Strait of Hormuz to about 30 per cent of total imports, down from over 50 per cent in January-February 2026.
While the short-term impact remains limited — largely confined to LPG cargoes linked to Iran — the blockade is expected to exert upward pressure on global crude oil prices.
Commenting on the situation, Sujata Sharma, Joint Secretary in the Oil Ministry, said India has managed the transition “quite satisfactorily” through diversification. “We were sourcing significant energy — crude, LPG and LNG — from that region. Over the last 45 days, we have adjusted well. Crude sourcing has been diversified across more than 40 countries, and arrangements are in place. LNG supplies remain comfortable, and LPG cargoes have been secured, allowing us to maintain stable supplies for domestic consumers,” she said.
For commercial consumption, LPG supplies have gradually improved to about 70 per cent of normal levels. However, some pressure persists, prompting the government to encourage consumers to shift to alternatives such as piped natural gas (PNG) and electric cooking solutions.
Domestic LPG production currently stands at around 45,000 tonnes per day, slightly lower than the earlier 46,000-47,000 tonnes. Despite the shutdown of Nayara Energy operations, the government has been able to maintain output at this level, Sharma added.
Published on April 13, 2026