Hardeep Singh Puri reveals India's playbook for surviving the Hormuz crisis

When the Strait of Hormuz, a critical maritime chokepoint that carries nearly a fifth of the world's oil and gas trade, was effectively shut amid escalating geopolitical tensions earlier this year, fears of a global energy crisis resurfaced. 

For India, which imports over 85% of its crude oil requirements, the disruption posed a significant threat to fuel supplies, LPG availability, and inflation. Yet nearly four months later, the country has emerged relatively unscathed.

In an editorial in The Economic Times, Union Petroleum and Natural Gas Minister Hardeep Singh Puri detailed how India navigated one of the most severe energy disruptions in recent years through strategic planning, diversified sourcing, and swift policy interventions.

"When the Strait of Hormuz closed in February-end, the Government of India (GOI) made it a priority that Indian citizens, especially the most vulnerable, be protected from unprecedented supply and price disruptions," Puri wrote.

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According to the minister, India was able to avoid the worst of the crisis because it had spent years expanding its energy infrastructure and reducing dependence on a limited group of suppliers. Before the disruption, nearly 60% of India's LPG imports came from West Asia. When supplies from the region dropped sharply, the government moved quickly to redirect refinery operations and boost domestic LPG production.

"Refineries that had never made cooking gas were reconfigured within a few days, and production was raised from 35 TMT a day to 54 TMT a day," Puri said.

The government also secured alternative cargo routes and diversified import sources. LPG shipments were rerouted through ports outside the Gulf, while new supply arrangements were established with countries including Algeria, Japan, and Canada. At the peak of the crisis, more than a dozen Indian LPG vessels were repositioned to ensure uninterrupted supplies.

To prevent shortages and hoarding, the Centre introduced digital authentication for LPG deliveries and imposed consumption limits on household cylinders. Commercial LPG distribution was also closely monitored to ensure domestic consumers remained protected.

One of the most striking outcomes of the government's intervention was the containment of cooking gas prices. While international LPG benchmark prices nearly doubled during the crisis, domestic consumers continued to receive subsidised cylinders at significantly lower rates.

"But a cylinder that would cost more than ₹1,600 at import-linked rates still reaches Ujjwala home at ₹642," Puri noted, adding that the government absorbed substantial losses to shield consumers.

The minister also highlighted the broader resilience of India's energy ecosystem. Today, the country operates 24 refineries, over 47,000 km of oil and gas pipelines, and more than one lakh retail fuel outlets serving millions daily.

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Reflecting on the episode, Puri argued that India's ability to withstand the disruption without emergency rationing was the result of long-term investments rather than short-term crisis management.

"The widening of India's crude basket, doubling of import terminals, and pipelines and reserves built across a decade were not abstractions when Hormuz closed. They were the very reason the lights stayed on," he wrote.