India successfully maintained uninterrupted fuel supplies and shielded consumers from severe price shocks during the prolonged Strait of Hormuz disruption, demonstrating a markedly improved level of energy resilience, industry experts said on Monday, 29 June. The achievement is being attributed to diversified crude sourcing, sustained infrastructure investment, and coordinated action by the Ministry of Petroleum and Natural Gas and public sector oil companies.

What Experts Said

Former Engineers India Limited (EIL) Chairman and Managing Director Vartika Shukla said the Hormuz disruption served as a stress test that India passed. 'The Hormuz disruption highlighted India's enhanced energy resilience, as uninterrupted supplies and minimal retail price impact were ensured through proactive government measures, diversified sourcing, and sustained investments in energy security infrastructure,' she said.

Former Hindustan Petroleum Corporation Limited (HPCL) Chairman and Managing Director M.K. Surana noted that expectations at the outset of the crisis were bleak. 'When the conflict started and the Strait of Hormuz was closed, most commentators expected that India, which is 85 per cent import-dependent when it comes to crude oil, would completely collapse because petrol would not be available,' he said.

Why India Defied the Odds

Surana pointed out that several countries were forced to introduce emergency rationing measures — including odd-even fuel schemes, compulsory work-from-home mandates, and early pump closures — while Indian citizens faced none of these restrictions. He credited this outcome to coordinated efforts across the petroleum ministry, public sector oil marketing companies, and multiple government agencies.

Notably, domestic cooking gas supplies remained uninterrupted throughout the disruption, sustained through a combination of supply-side and demand-side measures that prioritised household consumption. This is significant given that LPG supply chains are heavily reliant on West Asian imports.

Diversified Sourcing as the Core Strategy

According to Surana, India's strategy of sourcing crude oil from more than 40 countries was central to limiting the fallout. This geographic spread reduced dependence on any single shipping corridor and gave oil marketing companies the flexibility to reroute procurement when Hormuz access was constrained.

This comes amid a broader, multi-year push by the Centre to reduce vulnerability to supply shocks — a strategy that has included expanding strategic petroleum reserves, investing in pipeline and refinery infrastructure, and accelerating long-term supply agreements with producers in Africa, the Americas, and Russia.

Implications for India's Long-Term Energy Security

The Hormuz episode is likely to reinforce the Centre's case for deepening energy diversification. India's crude import bill remains among the largest in the world, and any sustained disruption to West Asian shipping lanes carries systemic risk. The fact that retail fuel prices and cooking gas availability held steady during this period will be cited as evidence that past investments in energy security infrastructure have begun to yield results.

Going forward, experts are expected to call for further expansion of strategic reserves and faster progress on domestic energy production to reduce the 85 per cent import dependency figure over the medium term.