Critical Crude Oil Shipments Fueling India’s Energy Needs

India-flagged vessels have begun sailing out of the Strait of Hormuz, marking a notable shift in the movement of ships critical to the country’s energy supplies amid ongoing regional tensions.

The development comes as India continues to rely heavily on imported crude oil, with Russia maintaining its position as the top supplier despite efforts by Saudi Arabia to narrow the gap. Data from Kpler shows Russian crude imports at just over 1 million barrels per day in February, down from 1.1 million barrels per day in January and 1.2 million barrels per day in December, while Saudi Arabia ramped up shipments by nearly 30% month-on-month to cross 1 million barrels per day — its highest level in almost six years.

India imports roughly 85–90% of its crude oil, around 45–50% of its fossil gas, and a significant share of its coal needs, particularly higher-grade fuels. This dependence exposes the country to structural vulnerabilities, especially when global supply tightens due to conflicts in key transit chokepoints like the Strait of Hormuz, through which a fifth of global oil trade passes.

The recent increase in coal utilization in India reflects its role as a “shock absorber” in the energy mix when gas becomes scarce or expensive, a trend driven by the same fossil fuel import dependence that leaves the economy exposed to price volatility and supply disruptions.

Ongoing US-Israel-Iran tensions have disrupted shipping through the Strait of Hormuz and the Suez Canal, raising freight costs, delaying exports, and contributing to inflationary pressures. These risks have prompted the Indian government and industry to draw up contingency plans, including discussions about ramping up purchases of Russian crude to mitigate potential supply interruptions.

Despite claims by US President Donald Trump that Indian refiners would halt purchases of Russian oil, February’s data indicates otherwise, with Russia still holding the top position as India’s largest crude oil supplier.

The movement of India-flagged vessels out of Hormuz underscores the active monitoring and adaptive routing of energy-carrying ships in response to evolving security conditions in the region, while India continues to navigate its long-term strategic challenge of reducing reliance on imported fossil fuels.