With Saudi Arabia facing pressure at both Hormuz and Bab al-Mandeb at once, assess the implications for India's energy security and suggest strategies to diversify.
New · District CollectorCan you hold the district for 72 hours?Floods, a heatwave, an outbreak, a grievance queue. Take the decisions, see the consequences.Play →Saudi Arabia's East-West pipeline to Yanbu was the Gulf's main way around Hormuz. With the Houthis now attacking Red Sea shipping, both of the Kingdom's sea exits are under pressure. For India, this turns a single-route risk into risks to supply, price and security. The danger is serious, but India can manage it because it has already diversified.
Implications for India's energy security
- Two chokepoints at once: Before the crisis, about 45% of India's crude imports passed through Hormuz [1]. Houthi attacks then halved Yanbu's exports in August and pushed Saudi cargoes through Suez, a longer and costlier route for Asian buyers [2].
- Price and cost shock: Rising freight and insurance costs are pushing up delivered oil prices [3]. This widens the current account deficit and adds to inflation.
- LPG is the weakest point: India imports about 60% of its LPG, and about 90% of those imports come via Hormuz [4]. This puts household cooking fuel, including Ujjwala connections, at risk.
- Diaspora security: The Houthi strike on Riyadh airport killed 12 people [5]. The MEA has responded publicly to the attacks [6]. Both remittances and evacuation plans are now at stake.
- What softens the blow: With 40+ suppliers, about 70% of India's crude now comes via routes outside Hormuz [1]. The shock has been absorbed, though not avoided.
Strategies to diversify
- Suppliers: Keep buying from the Americas, Africa and Russia, but do not let any one replacement supplier take the Gulf's share.
- Routes: Prefer term contracts with sources that avoid chokepoints. Extend naval escort missions such as Operation Sankalp to the Gulf of Aden.
- Buffers: The Strategic Petroleum Reserves (5.33 MMT) cover only about 9.5 days of need. Phase-II at Chandikhol and Padur (6.5 MMT) should be finished quickly [7], moving towards the IEA's 90-day norm.
- Demand side: Expand ethanol blending and flex-fuel vehicles [8], EVs and the Green Hydrogen Mission.
- Diplomacy: Use the India–Saudi Strategic Partnership Council to secure priority cargoes, and defend freedom of navigation under UNCLOS without taking sides between Riyadh and Tehran.
The twin squeeze shows that energy security depends on routes, reserves and demand as well as on suppliers. If India combines more suppliers, larger strategic reserves and a faster clean-energy transition, it can turn this crisis into lasting resilience. That also serves SDG 7 (affordable and clean energy) and India's goal of energy independence by 2047.
Sources
- 1PIB: Statement by Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri in Parliament on measures to address global energy supply disruptions from the West Asia conflict~45% of crude imports via Hormuz before the crisis; ~70% now via other routes; about 40 supplier countries
- 2U.S. EIA: Short-Term Energy Outlook, September 2026Yanbu exports roughly halved in August; Saudi cargoes moved via Suez, a longer and costlier route for Asia
- 3IEA: The soaring cost of shipping is lifting the price of oil for consumershigher freight costs raising delivered oil prices
- 4PIB: Inter-Ministerial Briefing held on Recent Developments in West Asia~60% of LPG imported; ~90% of LPG imports via Hormuz
- 5UN News: 'These attacks must cease immediately': Guterres condemns deadly Houthi strike on Riyadh airport12 killed in the Riyadh airport strike
- 6MEA: Response to Media Queries — Official Spokesperson's response on reported Houthi attacks in Saudi Arabia (9 Sept 2026)India's official response to the attacks
- 7PIB: Government steps to Strengthen Strategic Petroleum Reserves5.33 MMT SPR capacity (~9.5 days); Phase-II 6.5 MMT at Chandikhol and Padur
- 8PIB: From reducing oil imports to farmer prosperity: Sh. Hardeep Singh Puri launches first Flex-Fuel passenger vehicleflex-fuel and ethanol push to cut oil imports