How India is Diversifying Its Energy Sources Amid Global Turmoil
India's Strategic Energy Moves
New Delhi: In its quest for enhanced energy security, India is actively seeking alternative gas supplies from nations such as Australia and Canada, as reported by official sources on Saturday.
The ongoing conflict between the US and Israel with Iran has led to the closure of the crucial shipping lane through the Strait of Hormuz. However, officials emphasized that this is not the sole route for India's crude oil imports, indicating a shift away from reliance on a single maritime chokepoint.
They pointed out that crude supplies from regions like Russia, West Africa, the Americas, Central Asia, and non-Gulf Middle Eastern areas have created a buffer against disruptions in any one corridor, allowing for a managed adjustment in sourcing rather than a full-blown supply crisis.
Approximately 40% of India's crude imports transit through the Strait of Hormuz, while the remaining 60% utilize alternative routes that remain stable, ensuring a consistent energy supply for Indian consumers even amidst global disruptions or during the pandemic.
Countries including Australia and Canada have stepped up to offer additional gas supplies, and India is committed to exploring various sources to bolster its energy security.
Recently, India has forged new energy supply agreements with partners like the United States and the United Arab Emirates to secure stable, long-term energy supplies.
Over the past decade, India's strategic oil diplomacy has broadened its supplier network from 27 to 40 countries across six continents, marking a significant evolution in its energy security strategy.
Officials noted that India's energy procurement is driven by a singular principle: national interest.
"We procure crude from sources that offer competitive pricing and reliable delivery. This approach has remained consistent across different administrations and geopolitical climates," stated a senior government official, adding that recent US remarks were aimed at a domestic audience.
On Friday, US Treasury Secretary Scott Bessent announced a 30-day waiver allowing Indian refiners to continue purchasing Russian oil, recognizing India as a vital partner.
India has adhered to all 18 rounds of G7 price cap regulations since their inception.
This waiver alleviates tensions that were counterproductive and acknowledges India's stabilizing influence in global energy markets.
India maintains close communication with major global crude oil and gas suppliers, as well as international energy organizations like the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC).
"India has operated within international law at all times. Every transaction utilized compliant shipping, verified channels, and legitimate traders. India has not violated any regulations. The stabilization of global crude prices during India's active procurement is clear evidence of this," the official added.
Sources indicated that all government decisions in the petroleum sector are based on three key criteria: affordability, availability, and sustainability. These are not mere aspirations but operational commitments with measurable outcomes.
Regarding fuel prices, it was noted that petrol prices surged by approximately 55% in Pakistan, 22% in Germany, 19% in France, and 11.54% in the US during the same timeframe, while India's petrol prices saw an increase of less than 1%.