HomeIndia NewsIs India ready to sustain the impact of Iran war? Here’s what we know about country’s energy resilience
The Israel-US attack on Tehran has escalated the war in Iran, affecting energy supplies. India, with a 250-million-barrel buffer, diversifies imports and explores alternatives.
By CNBCTV18.com March 7, 2026, 11:48:05 AM IST (Published)
3 Min Read
The war in Iran, which was started by the Israeli-US attack on Tehran, has escalated at a rapid pace. The conflict, which started in Iran, has now spread to other parts of the perennially volatile West Asia region.
One of the main casualties of this war, right in the first week since the beginning of the conflict, has been energy. Not only is Iran a major oil exporter, but it is also located next to the strategically monumental Strait of Hormuz.
This has brought anxiety to many who are dependent on crude oil imports, especially the likes of India. Many have raised concerns over India’s ability to withstand the pressure of the war in terms of the availability and supply of the black gold, that is, oil.
As per data from the Petroleum Planning and Analysis Cell (PPAC), over 250 million barrels of crude oil and refined petroleum products, or over 4,000 crore litres, are stored in India. This means that the entire supply chain will have buffer coverage for seven to eight weeks. These stocks are not kept in one place or in one format.
CRUDE COUNT
| Crude oil: 25 days | Refined products: 25 days | 7 to 8 weeks of total buffer |
| Combined crude oil + refined product stock | Over 250 million barrels (~4,000 crore litres) |
| Crude import diversification | 40 countries — not Hormuz-dependent |
| Refining capacity (4th largest globally) | 258 MMTPA — exceeds domestic demand |
| Domestic consumption | 210–230 MMTPA |
| Ethanol blending at 20%: annual crude displacement | ~44 million barrels (6 mn tonnes) |
| Petrol/diesel price change over 4 consecutive years | India: –0.67% petrol | +1.15% diesel |
| Pump outlet dry-outs in 12 years | None |
Courtesy: Petroleum Planning and Analysis Cell
They are dispersed throughout the three strategic petroleum reserve sites at Mangalore, Padur, and Visakhapatnam, as well as above-ground storage tanks, pipeline systems, subterranean strategic caverns, terminal tankage, and offshore storage vessels en route.
About 40% of India’s crude imports pass through the Strait of Hormuz, while about 60% are routed through other supply routes that remain unaffected as of now.
In addition, other countries, including Australia and Canada, have also offered additional gas supplies, and India continues to explore alternative sources to further strengthen energy security. India has also recently entered into new energy supply arrangements with partners such as the United States.
| Country | Petrol: Feb 2022 to Feb 2026 | Diesel: Feb 2022 to Feb 2026 |
| Pakistan | 55.52% | 43.44% |
| Sri Lanka | 30.74% | 81.41% |
| Nepal | 8.60% | 7.56% |
| USA | 11.54% | 10.46% |
| Italy | 13.17% | 25.29% |
| Spain | 16.23% | 21.05% |
| Germany | 21.77% | 28.90% |
| France | 19.33% | 23.84% |
| India (Delhi) | -0.67% | +1.15% |
Courtesy: Petroleum Planning and Analysis CellUS statements made recently are intended to allay fears. A 30-day reprieve allowing Indian refiners to keep buying Russian oil was issued by US Treasury Secretary Scott Bessent, who specifically referred to India as an important ally. Since the introduction of the G7 price cap regulations, India has complied with all eighteen rounds.
Also Read: US forces likely responsible for attack on Iran school, suggests military investigation
(Edited by : JUVIRAJ ANCHIL)
