UAE emerges as major supplier as India diversifies oil imports
India has expanded crude imports to about 43 countries, with the UAE supplying 15–20 per cent of total energy imports, a senior official said.
Illustration: AI-generated image
India has expanded its crude oil imports to about 43 countries as it works to secure reliable energy supplies, with the UAE now providing between 15 and 20 per cent of total energy imports, according to a senior Indian official.
Neeraj Mittal, Secretary of India's Ministry of Petroleum and Natural Gas, said the UAE has become one of the major hydrocarbon suppliers, with volumes rising since disruptions to the Strait of Hormuz in late February. He described the UAE as a reliable partner for LPG, LNG and crude oil, and added that the UAE accounts for about 25 per cent of India's LPG imports, 10 per cent of LNG and 15 per cent of crude oil.
Energy supplies to global markets were disrupted after the Strait of Hormuz was effectively shut in late February. The vital waterway previously handled about a fifth of global oil and gas flows. India imports more than 90 per cent of its crude, up from 55 per cent in the 1999 fiscal year, according to consultancy EY.
Mr Mittal said India's long-term diversification strategy has paid off, with domestic fuel prices rising only 7 per cent from pre-crisis levels and no shortages or rationing. Oil prices have surged more than 45 per cent since the disruption began, with global benchmark Brent trading close to $105 per barrel, but India remains one of the few countries where energy demand is still growing.
The UAE and India are strengthening bilateral energy ties. During Prime Minister Narendra Modi's visit to the UAE in May, Adnoc signed an agreement with Indian Strategic Petroleum Reserves to expand crude oil storage capacity in India to 30 million barrels, with potential storage opportunities in Fujairah.
India has also increased energy purchases from the US, with American LPG now making up 67 per cent of total imported LPG, up from 10 per cent at the start of the year. To reduce import reliance, New Delhi has launched a $9 billion ultra-deep and deep-water oil exploration programme and a $2.5 billion initiative to convert waste into biogas.
