India's energy diplomacy and swift government action shielded domestic fuel supplies when the Strait of Hormuz closure on 28 February threatened to destabilise global energy markets, former Indian Ambassador to the UAE, Navdeep Suri, said on Monday, 29 June. Suri described the closure as 'really a worst-case situation for global energy markets' but credited proactive diplomacy for keeping Indian consumers largely insulated.

Diplomatic relationships that paid off

'I think there was some very proactive energy diplomacy that we saw,' Suri said. He pointed to the special ties India had cultivated with the UAE, Saudi Arabia, and Qatar as decisive factors. The Prime Minister's visit to the UAE on 15 May and the Minister of Petroleum's visit to Qatar during the conflict, he noted, ensured that energy flows — including LPG and crude oil — continued without disruption.

India's energy pivot: From Gulf to Russia to the Americas

Beyond the Gulf, Suri highlighted India's ability to rapidly diversify its import sources. The country pivoted from Gulf suppliers to Russia, then to the United States, and further extended its reach to Venezuela, Nigeria, Gabon, and Guyana — tapping non-traditional suppliers across Africa and Latin America. 'I think all of that contributed to a situation where even though many other countries were facing a serious crisis, we managed to largely avoid it,' Suri remarked.

How prices were kept in check

When global oil prices spiked from $70 a barrel to $126 a barrel following the 28 February crisis, the government and state-run oil companies chose to absorb much of the increase rather than pass it on to consumers. 'The government sacrificed taxes, the oil companies sacrificed some of their profits and managed to keep prices in check,' Suri said. He described the pricing response as 'fairly prudent', adding that 'the objective of the government was really that in the short run, the consumer should be protected.'

Domestic production and demand management

Alongside import diversification, India also expanded domestic LPG production relatively quickly, according to Suri. This combination of supply-side flexibility and demand management helped prevent the shortages seen elsewhere. In sharp contrast, countries like Pakistan reportedly shut schools, and several other nations experienced fuel queues and acute shortages — conditions that did not materialise in India to any comparable degree.

The broader significance

The episode underscores how India's multi-alignment foreign policy — maintaining working relationships with the Gulf, Russia, the West, and emerging markets simultaneously — translated into a tangible economic buffer during a geopolitical shock. With energy security remaining a structural vulnerability for a large import-dependent economy, the crisis has reinforced arguments for continued supply diversification. How durable these arrangements prove in a prolonged or deeper conflict scenario remains the key question going forward.