Indian refiners are scrambling to secure alternative oil supplies as the Iran crisis disrupts flows through the Strait of Hormuz. Government officials and state refiners met over the weekend to discuss contingency plans, including tapping into Russian oil cargoes currently idling in Asian waters. This marks a significant shift as India had been reducing Russian imports under US pressure.

India, the world's third-largest oil importer, has cut Russian purchases to about 1 million barrels daily — half the peak levels — and is now considering Moscow's offers again. With 9.5 million barrels of Russian oil sitting unused in Asian waters, officials are weighing options from strategic reserves to boosting domestic production. The crisis has exposed India's vulnerability given its heavy reliance on Middle Eastern supplies.

Should the disruption continue, India may curb fuel exports and prioritize domestic consumption, potentially directing industrial users to switch fuels. Officials could also press Reliance Industries to increase domestic fuel supply while other refiners adjust output to maximize liquefied petroleum gas production. With strategic reserves holding only about 30 million barrels — equivalent to six days of consumption — India faces a precarious position if the Middle East conflict escalates further.