NEW DELHI — Iran's tightening control over the Strait of Hormuz under the banner of ending regional insecurity poses significant risks to India's energy security, with nearly 62% of the country's crude oil imports transiting through the narrow waterway.
The strategic chokepoint handles approximately 21 million barrels daily, including supplies critical to Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, which collectively process over 5 million barrels per day across their refineries.
India's annual energy import bill exceeds $100 billion, with Gulf nations accounting for the lion's share. Any disruption in Hormuz could trigger immediate supply chain bottlenecks and freight cost escalations, industry analysts warned.
"Enhanced Iranian naval deployments create uncertainty for shipping insurance premiums and delivery timelines," said a senior official at a Mumbai-based petroleum logistics firm, requesting anonymity.
Bihar's industrial corridor, heavily dependent on diesel and petroleum products for agriculture and manufacturing, remains vulnerable to price volatility stemming from geopolitical tensions. The state's fertiliser distribution network and transport sector could face immediate cost pressures.
The government is accelerating strategic petroleum reserve expansion and diversifying import sources to mitigate exposure to Middle Eastern supply disruptions.