India is preparing a wide-ranging oil contingency strategy as tensions between the United States and Iran threaten prolonged disruption through the Strait of Hormuz, a vital energy chokepoint.

According to officials cited by The Economic Times, the government is reviewing measures that include restricting exports of petrol and diesel, ramping up crude imports from Russia, and introducing demand-management steps such as LPG rationing if supply routes remain blocked for weeks.

Oil and gas markets reacted sharply to the regional escalation. Brent crude surged nearly 10% to around $80 per barrel, while European natural gas prices jumped more than 40% following attacks on major energy facilities in West Asia. Sparse tanker movement through the Strait of Hormuz has heightened concerns about continuity of supply.

India currently exports roughly one-third of its petrol production, about a quarter of diesel, and nearly half of aviation turbine fuel (ATF). In an emergency, refiners could divert ATF into other fuel streams to stabilize domestic availability.

The most vulnerable segment is liquefied petroleum gas (LPG). India imports nearly two-thirds of its LPG consumption, with 85–90% sourced from Gulf nations. Industry estimates suggest existing stocks — including onshore inventories and shipments already past Hormuz — may cover less than two weeks if fresh cargoes are delayed.

State-run refiners Indian Oil, HPCL, and BPCL have reportedly begun boosting LPG output at integrated petrochemical complexes. Officials are also evaluating targeted rationing, particularly for households with access to alternative fuels.

India’s crude reserves cover about 17–18 days of demand, while petrol and diesel inventories provide roughly 20–21 days. LNG stocks are estimated at 10–12 days.

Boosting discounted Russian crude imports is another key fallback option. Significant Russian volumes remain at sea and could be redirected to India if global supply tightens further.