Bharat Navigates Crisis With Smart Energy Strategy

At a time when tensions involving Iran, Israel, and the United States are raising fears of a global energy shock, India is quietly playing a far more sophisticated game. While television studios warn of an impending crisis, the reality suggests a calculated strategy guided not by emotion but by return on investment. New Delhi continues to buy discounted Russian crude when it makes economic sense, engages diplomatically with Iran, sustains deep strategic ties with Israel, and simultaneously expands investment in the American energy ecosystem. A striking example is Reliance Industries, led by Mukesh Ambani, backing a massive refinery project in Texas in partnership with America First Refining. This project, expected to generate up to $300 billion in long-term value, will process American shale crude and produce billions of gallons of refined fuel for global markets, marking the first major new refinery in the United States in nearly half a century. Long-term offtake agreements ensure stable revenue streams and integration with global supply chains, positioning India as a serious player in the global energy map.

India’s multi-vector energy strategy is clear: buy discounted crude from Russia, invest capital in the United States, maintain dialogue with Iran, sustain strategic partnership with Israel, and refine crude at home in Jamnagar, the world’s largest refinery complex. This approach is already visible in numbers.

India’s purchase of Russian crude surged 50 percent in March, rising to 1.5 million barrels per day compared to 1.04 million in February. As the world’s third-largest crude importer, sourcing 88 percent of its oil needs from abroad and consuming 5.8 million barrels daily, India is hedging against Middle Eastern disruptions. Normally, 2.5–2.7 million barrels come from Saudi Arabia, Iraq, and the UAE via the Strait of Hormuz. With conflict widening in the region, tapping Russian supplies is a smart hedge.

On the domestic front, the BJP-led government has assured the nation that despite global disruptions, India’s kitchens will not face shortages. On 12 March, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri addressed Parliament, outlining measures taken to address global energy supply disruptions arising from the conflict in West Asia. He noted that India previously imported about 60 percent of its LPG requirements from Gulf countries such as Qatar, UAE, Saudi Arabia, and Kuwait, while 40 percent was produced domestically. Procurement has now been diversified, with cargoes secured from the United States, Norway, Canada, Algeria, and Russia, in addition to Gulf sources.

The LPG Control Order issued on March 8, 2026 directed all refineries to maximize LPG yields and channel the entire output of C3 and C4 hydrocarbon streams exclusively to the three Oil Marketing Companies for domestic cooking gas. As a result, LPG production has been increased by 28 percent in just five days, with further procurement underway. Puri emphasized that the Modi government’s foremost priority is that the kitchens of India’s 33+ crore families, especially the poor and underprivileged, do not face any shortage. Domestic supply is fully protected, and the delivery cycle remains unchanged at 2.5 days. Hospitals and educational institutions have uninterrupted priority supply regardless of broader demand conditions.

Field reports of hoarding and panic-booking at distributor and retail levels were addressed by the minister, who clarified these reflected demand distortion, not production or supply failure. To prevent diversion, Delivery Authentication Code coverage is being expanded from 50% to 90%, ensuring cylinders are logged only when confirmed by consumers. A 25-day minimum booking gap in urban areas and 45 days in rural regions has been introduced. Enforcement is coordinated by OMC field officers and the Anti-Adulteration Cell, with the Home Secretary aligning state-level administration.

Commercial LPG has also been regulated to curb black marketing. Normally sold freely, commercial LPG posed hoarding risks; a three-member committee of IOCL, HPCL, and BPCL Executive Directors was constituted on 9 March 2026. State departments and restaurant associations assessed genuine needs, and 20% of average monthly commercial LPG will now be allocated to genuine users.

“India turns crisis into opportunity: boosting Russian crude, diversifying U.S. ties, engaging Iran and Israel, and expanding LPG to safeguard households—energy secured, future safe.”

Reliance’s Texas refinery strengthens global ties, while domestic measures protect essential services. India balances immediate needs with long-term gains, showing energy security comes from foresight, diversification, and smart investment.

THE VIEWS EXPRESSED BY THE AUTHOR ARE PERSONAL

Surveshwar Sarvesh Pathak, The author is a senior journalist and founder of www.fashiongaze.com