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India's Energy Security for UPSC
75 notes · updated 30 Oct 2026
In the news
- India slashes U.S. oil imports to zero following Lindsey O. Graham Act
India slashed oil imports from the U.S. to zero and reduced Russian imports by nearly 18% in September 2026 following the signing of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026.
- Oil prices breach $115 per barrel following Houthi attacks on Saudi Arabia
Oil prices breached $115 per barrel on October 22, 2026, following Houthi attacks on Saudi Arabia, causing India's oil basket to exceed RBI projections.
- India’s crude oil import bill surged 47% to $15.4 billion in September
Petroleum Planning and Analysis Cell (PPAC) reported a 47% year-on-year surge in India's crude oil import bill to $15.4 billion in September 2026.
- India's import bill pressured as Brent crude maintains premium from Houthi risks
India's import bill is facing pressure as Brent crude prices remain elevated due to geopolitical risks posed by Houthi forces in the Red Sea and Strait of Hormuz.
- India's economy faces risks as crude oil prices jump 28.66% to $116.04
The Finance Ministry flagged risks to India's economy due to a 28.66% jump in crude oil prices to $116.04 per barrel in September and uncertainty over a US bill regarding tariffs on Russian crude buyers.
- U.S. looking to become huge source of India’s energy needs: Senior State Department official
A senior U.S. State Department official stated that the U.S. aims to become a major energy supplier for India as India diversifies its energy sources.
- Gulf tensions spark India's plan to safeguard 10 million expatriates and secure energy supplies
The Consultative Committee of Parliament for External Affairs discussed measures to safeguard 10 million Indian expatriates and secure energy supplies amidst Gulf regional tensions.
- New LPG connections still on hold due to latest flare-ups in West Asia
Shortage of new 14.2 kg LPG cylinder connections in major cities due to the West Asia conflict affecting supply chains.
- The US-Israel war on Iran has disrupted crude oil and natural gas
Geopolitical tensions between the US, Israel, and Iran have disrupted oil and gas supplies, leading to a global surge in coal consumption to meet energy shortages.
- India’s crude oil import bill surges 41% to $13.7 billion in July 2026
India's crude oil import bill saw a significant 41% surge in July 2026, highlighting the impact of global price volatility on India's trade balance.
- India Orders Refiners to Boost LPG Output to 63,810 Tons Daily
The Indian government ordered refiners to increase LPG production to 63,810 tons daily to mitigate supply risks caused by the Iran-US conflict in the Strait of Hormuz.
- U.S. LPG supply to India soars to 67%, up from 10% target
Petroleum Minister Hardeep Singh Puri announced that U.S. LPG imports have surged to 67% of India's total, significantly exceeding the initial 10% diversification target.
- Commercial LPG Prices Drop by ₹200, But ATF Rises by ₹5
Oil Marketing Companies (OMCs) reduced commercial LPG prices by ₹200 while increasing Aviation Turbine Fuel (ATF) prices, impacting industrial costs and aviation logistics.
- India buys over 2.3 million barrels of Russian crude, making Russia its top supplier
India's oil imports from Russia reached a milestone where Russia became the top supplier, driven by discounted pricing and geopolitical shifts in the Middle East.
- US-Iran tensions push Brent crude above USD 90, drag Asian markets down
Escalating US-Iran hostilities and disruptions in the Strait of Hormuz pushed Brent crude above USD 90, weakening the Indian rupee and dragging down Asian stock markets.
- Modi: India Diversified Energy Imports to 40+ Countries Amidst Crisis
PM Modi highlighted India's strategic diversification of energy imports to over 40 countries to mitigate the impact of the global energy crisis.
- Middle East War, Petrol Prices Explained: Why Petrol Prices in India Don't Follow Crude's Trajectory
The Petroleum Planning & Analysis Cell (PPAC) highlighted a decoupling between falling global crude oil prices and rising domestic petrol prices in Delhi between March and June 2026.
- Is The Worst Over? Expert Decodes US-Iran Deal Impact On Inflation, Rupee
The US-Iran agreement has eased geopolitical risk premiums, leading to a significant drop in Brent crude prices and stabilizing the Indian Rupee.
- Raghuram Rajan's warning to India after Hormuz shock: Build bigger oil reserves, diversify faster
Former RBI Governor Raghuram Rajan warned India to build larger strategic oil reserves and diversify import sources to mitigate energy security risks exposed by the Hormuz Strait disruption.
- Saved by the barrel: Why crude hasn't hit the $200 mark
Oil prices stabilized near $100 per barrel despite joint strikes by Donald Trump and Israel on Iran disrupting the Strait of Hormuz.
- Share of Russian oil in Indian imports rises to 38%, premium paid jumps 425% in April 2026
India's oil import bill rose by 61.3% to $15.4 billion in April 2026, driven by a surge in oil prices and a jump in Russia's share of imports to 38%.
- For larger PNG footprint, Government looks at consumer-friendly centralised portal
The Indian government proposed a centralized portal to facilitate the migration of LPG consumers to PNG to mitigate supply pressure caused by import disruptions from West Asia.
- US Israel Iran War 'India Better Placed Amid Iran War Than In 2013': Ex-RBI Governor To NDTV
Former RBI Governor D Subbarao advised the Reserve Bank of India to allow the rupee to fluctuate with economic fundamentals rather than intervening heavily amidst high oil prices caused by the Iran conflict.
- Crude oil for India | New window
The UAE's decision to exit OPEC after six decades creates a new window for India's energy security and trade dynamics with the UAE.
- India’s energy strategy needs price correction
The Strait of Hormuz crisis has highlighted India's structural vulnerability due to heavy reliance on imported oil and the need for a sustainable fuel pricing strategy.
- How LPG price hike will impact not just food prices in Bengaluru, but also bottled water and spices
The Union Government implemented three commercial LPG price hikes in 60 days, leading hoteliers in Bengaluru to announce uniform price increases to offset rising costs of ingredients and logistics.
- India raises cooking gas, jet fuel prices as supply pressures mount
Indian Oil Corporation Limited (IOCL) raised prices for commercial LPG and jet fuel due to supply pressures caused by the Middle East war.
- India officials push for regional energy hub in Sri Lanka
Indian Foreign Secretary Vikram Misri urged the swift implementation of a proposed regional energy hub in Sri Lanka involving India, Sri Lanka, and the UAE.
- India LPG consumption slides 13% amid West Asia conflict
The Oil Ministry's Petroleum Planning and Analysis Cell (PPAC) reported a 13% slide in India's LPG consumption in March 2026 due to supply disruptions from the West Asia conflict.
- LPG and fuel crisis LIVE: Jet fuel prices more than doubled to ₹2.07 lakh/kl; commercial LPG up ₹195.50
Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum raised aviation turbine fuel (ATF) prices to a record high of ₹2.07 lakh per kilolitre due to surging global oil prices linked to the West Asia conflict.
- India sends 38,000 metric tonnes of fuel to support Sri Lanka
India delivered 38,000 metric tonnes of petroleum to Sri Lanka to ensure fuel supply continuity following disruptions caused by the war in West Asia.
- India lowers fuel taxes, says rumours of lockdown ‘completely false’ | US-Israel war on Iran News
The Indian government slashed petrol and diesel duties to shield consumers from global energy price hikes caused by the US-Israel war on Iran.
- The global winners and losers of the war in Iran
The conflict in Iran is causing uneven global economic fallout, with high energy costs impacting Western economies while India and China leverage the situation to secure Russian oil.
- ‘Waiting for days’: India feels impact of gas supply chain disruption amid Iran conflict
India is experiencing severe cooking gas shortages and price hikes due to the closure of the Strait of Hormuz amid the Iran conflict.
- LNG: Will the Iran war squeeze India's piped gas next?
The Iran war has raised concerns regarding potential disruptions to India's piped natural gas supply due to the halting of exports from Qatar's Ras Laffan complex.
- Can oil hit $200? How the worst-case scenario could hurt D-Street and Indian economy
Iran warned that prolonged tensions between the US-Israel alliance and Iran could push crude oil prices toward $200 per barrel, threatening India's economy.
- How badly has the Iran war hit the global economy? The tell-tale signs | US-Israel war on Iran News
The escalating conflict between Israel and Iran has triggered a surge in global energy prices and sparked warnings from the IMF regarding potential stagflation.
- Oil prices have crossed $100 per barrel due to escalating Middle East tensions, with Iran warning of potential price hikes to $200
Oil prices have crossed $100 per barrel due to escalating Middle East tensions, with Iran warning of potential price hikes to $200.
- The war in West Asia has triggered a significant LPG shortage and price hike in India, forcing a shift back to traditional fuels like firewood
The war in West Asia has triggered a significant LPG shortage and price hike in India, forcing a shift back to traditional fuels like firewood.
- India well-placed to deal with any situation on crude oil, fuel amid West Asia supply shock: Piyush Goyal
Union Minister Piyush Goyal stated that India is well-positioned to handle West Asia supply shocks due to ample crude oil and fuel reserves.
- Government bars PNG users from retaining or refilling LPG connections
The Ministry of Petroleum and Natural Gas barred individuals with piped natural gas (PNG) connections from retaining or refilling LPG connections to prioritize domestic supply amidst West Asia tensions.
- Rising concerns over India’s LPG supply: Causes, constraints & market implications
The Indian government invoked emergency powers to boost domestic LPG production and secure household supplies amid supply disruptions at the Strait of Hormuz.
- Stock impact: 13 biggest losers in energy crisis amid raging Iran-Israel war
Escalated Iran-Israel conflict led to oil prices surging above $100 per barrel, causing significant stock declines in Indian Oil Marketing Companies (OMCs) and other energy-dependent sectors.
- How Israel-US war on Iran puts $50bn in Indian remittances at risk | US-Israel war on Iran News
The US-Israel war on Iran has triggered a global energy crisis, threatening India's economic security and the flow of $50bn in remittances from the GCC region.
- India recieved requests for energy supplies from Bangladesh, Sri Lanka and Maldives, says MEA
The Ministry of External Affairs (MEA) stated that India received requests for energy supplies from Bangladesh, Sri Lanka, and Maldives, highlighting India's role as a regional energy hub.
- Lacking long-term storage, India must rely on imports to manage LPG supply
The Indian government reported a 25% increase in domestic LPG production, yet a 50% supply shortfall persists due to inadequate long-term storage infrastructure.
- LPG shortage: Power supply to Bengaluru might be hit by natural gas priority list issued by Centre
The Central Government issued a gazette notification prioritizing natural gas allocation to select sectors due to supply constraints from the US-Israel-Iran conflict
- LPG crisis: India needs to electrify heat and win thermal independence
The Ministry of Petroleum and Natural Gas reduced gas allocations for non-priority industries due to a gas shortage caused by the geopolitical crisis in the Strait of Hormuz.
- India must diversify energy sources as oil markets turn volatile, says former Deputy NSA Pankaj Saran
Former Deputy NSA Pankaj Saran warned at the Synergia Conclave 2026 that volatile oil prices driven by the Iran-U.S.-Israel conflict threaten India's balance of payments and current account deficit.
- Asia’s energy-reliant economies face ‘existential threat’ from prolonged Iran war
Analysts warned that a prolonged Iran war poses an 'existential threat' to Asia's energy-reliant economies, specifically China, India, and Japan, due to potential fuel cost spikes and trade deficits.
- Additional measures to ensure domestic LPG supplies likely
Public Sector Undertakings (PSUs) and the government are implementing supply restrictions and cylinder size adjustments to manage domestic cooking gas shortages.
- State hotel associations are urging governments to ensure a steady supply of commercial LPG as oil marketing companies ration supplies due to global fuel disruptions from the Iran-US-Israel conflict
State hotel associations are urging governments to ensure a steady supply of commercial LPG as oil marketing companies ration supplies due to global fuel disruptions from the Iran-US-Israel conflict.
- India’s LNG & LPG shortage to be short-lived as new supply routes, domestic production kick in: Govt sources
The Ministry of Petroleum and Natural Gas (MoPNG) is addressing a natural gas supply crunch by diversifying LNG imports from Norway and the U.S. and prioritizing LPG production for households.
- As energy scarcity hits Bangladesh, India sends diesel using ‘Friendship Pipeline’
India supplied 5,000 metric tonnes of diesel to Bangladesh via the 'Friendship Pipeline' to mitigate a critical petroleum shortage caused by Gulf region supply disruptions.
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Key facts
- Figure: Russia and UAE: Account for 60% of India's total oil imports. note →
- Concept: Energy Security: Impact of geopolitical instability on global supply chains and oil price volatility
- Body: Petroleum Planning and Analysis Cell (PPAC) — the body providing data on India's oil and gas imports. note →
- Concept: Geopolitical Premium — Price elevation caused by Houthi forces in the Red Sea and Strait of Hormuz note →
- Concept: Energy Diversification — India's strategy to source energy from multiple countries including the U.S. note →
- Concept: Look West policy — India's strategic framework for ensuring energy security and protecting diaspora interests. note →
Practice · 5 questions
With reference to India's oil imports and the Lindsey O. Graham Act, consider the following statements:
- India's oil import bill in September 2026 was $14.3 billion.
- The Lindsey O. Graham Act empowers the U.S. to levy tariffs of up to 100% on countries importing large quantities of Russian oil and gas.
- Russia and the UAE together account for 40% of India's total oil imports.
Which of the statements given above is/are correct?
- (a)3 only
- (b)1 and 2 only
- (c)1 and 3 only
- (d)2 and 3 only
Answer
(b) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: Russia and the UAE together account for 60% of India's oil imports. Note →
What was the Reserve Bank of India's (RBI) projection for oil prices mentioned in the report?
- (a)$110 per barrel
- (b)$120 per barrel
- (c)$95 per barrel
- (d)$100 per barrel
Answer
(c) $95 per barrel — The RBI provided a projection of $95 per barrel, which was exceeded by India's oil basket. Note →
With reference to the recent developments in the Middle East oil sector, consider the following statements:
- Brent crude futures reached $112.35 on October 22, 2026.
- The West Texas Intermediate (WTI) reached $109.55 on October 22, 2026.
- The Shaybah oil facility is an asset of Saudi Aramco.
Which of the statements given above is/are correct?
- (a)3 only
- (b)1 and 2 only
- (c)1 and 3 only
- (d)1, 2 and 3
Answer
(c) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: The note states WTI reached $99.55. Note →
Which body is responsible for providing data on India's oil and gas imports?
- (a)Ministry of Commerce and Industry
- (b)Petroleum Planning and Analysis Cell
- (c)Directorate General of Commercial Intelligence
- (d)National Oil Development Authority
Answer
(b) Petroleum Planning and Analysis Cell — The Petroleum Planning and Analysis Cell (PPAC) is the body providing data on India's oil and gas imports. Note →
In September, what was the recorded volume of India's crude oil imports per day?
- (a)4.1 million barrels
- (b)5.26 million barrels
- (c)3.8 million barrels
- (d)6.5 million barrels
Answer
(b) 5.26 million barrels — The note specifies that India imported 5.26 million barrels of crude oil per day in September. Note →
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