The Hidden Oil Premium: Why India Is Paying More Than Market Prices

Global oil markets are undergoing a major structural shift as supply disruptions and geopolitical tensions force countries to rethink their energy security strategies. According to Narendran Taneja, Energy Expert, the Strait of Hormuz disruption has pushed major economies like India and Japan into aggressive diversification of crude sourcing. While current screen prices may suggest stability near 92 dollars per barrel, actual procurement costs are significantly higher due to supply competition and risk premiums. He highlights that supply security has now overtaken pure economics in importance. Over the next 10–12 months, markets expect potential easing of tensions, but countries are unlikely to revert to old dependencies. Instead, a long-term energy doctrine is emerging, focusing on reducing reliance on any single geography and strengthening diversified global supply chains.