Archive · 20 Aug 2026
India diversifies crude supplies as Middle East disruptions threaten security
India needs a lot of crude oil to make petrol, diesel and other fuels.
Fighting and disruptions near the Middle East and the Strait of Hormuz made some usual oil routes less reliable.
India responded by buying more oil from countries such as Venezuela, Brazil, Russia and African producers.
Venezuela supplied about 444,000 barrels per day in August.
Russia was still India’s biggest supplier.
Buying from more places can make it easier to replace oil if one route is disrupted.
However, oil from distant countries can cost more to ship and insure.
India is working on producing more energy at home and using electric vehicles, gas, biofuels and renewable energy.
These alternatives are not yet large enough to replace oil, so India will continue importing substantial amounts for years.
India’s Venezuelan crude imports rose to about 444,000 barrels per day in August, making Venezuela its fourth-largest supplier.
Russia remained India’s dominant supplier, providing nearly 2 million barrels per day in August and more than half of imports in July.
Middle Eastern crude accounted for about 30% of India’s imports during April-July, down from 43% a year earlier.
Latin American supplies, including Venezuelan and Brazilian crude, rose to 12.7% of imports from 3.5% over the same period.
India is also pursuing domestic production, strategic inventories, natural gas, electric vehicles, biofuels and renewables, though oil demand remains strong.
- Who
- India and its oil refiners, with Venezuela, Russia, Brazil, African producers and Middle Eastern suppliers involved in the supply shift.
- What
- India is diversifying crude-oil suppliers and transport routes after disruptions linked to the Iran conflict and the Strait of Hormuz.
- When
- The shift accelerated after Venezuelan imports resumed in April; the cited data covers April through August.
- Where
- India’s crude supply is being sourced increasingly from Venezuela and other Latin American, Atlantic Basin and African locations, alongside Russia and the Middle East.
- Why
- To improve energy security and reduce exposure to disruptions affecting traditional Middle Eastern supply routes, while maintaining sufficient crude imports.
Benefits of diversification
Limits and costs of diversification
Supply security
Benefits of diversification
Buying crude from Venezuela, Russia, Brazil, Africa and other regions gives India more options if a single supplier or route is disrupted.
Limits and costs of diversification
Diversification cannot fully protect India from global price shocks because the country still needs to import large volumes of oil.
Economic cost
Benefits of diversification
Switching between Middle Eastern, Russian and Atlantic Basin crude has helped Indian refiners keep operations relatively resilient.
Limits and costs of diversification
Distant supplies can involve longer voyages, higher freight and insurance costs, and a larger oil import bill.
Reducing oil dependence
Benefits of diversification
Domestic production, strategic inventories, gas, electric vehicles, biofuels and renewables could gradually strengthen India’s energy security.
Limits and costs of diversification
Alternatives remain too limited to materially displace oil demand soon, as transport, aviation, industry and petrochemical activity continue to grow.
- Venezuelan imports
- About 444,000 barrels per day in August, according to Kpler ship-tracking data.
- Russian imports
- Nearly 2 million barrels per day in August; Russian crude exceeded half of India’s imports in July.
- Middle Eastern share
- About 30% of India’s crude imports during April-July, compared with 43% a year earlier.
- Latin American share
- 12.7% of India’s imports during April-July, up from 3.5% a year earlier.
- Total crude imports
- Around 5 million barrels per day in recent months.
- Main cost concern
- Longer voyages from Venezuela, the United States, West Africa and Latin America can raise freight and insurance costs.
- Other energy vulnerabilities
- The article says India is more dependent on the Middle East for LPG, while LNG also has significant supply and logistical vulnerabilities.