New Delhi, March 5: Crude oil prices surged by over 2% on Thursday amid escalating tensions in the Middle East. The increase is attributed to supply concerns, particularly after Iran closed the Strait of Hormuz.
In early trading on the Intercontinental Exchange, the April contract for benchmark crude rose by 2.43%, reaching $83.26 per barrel. Meanwhile, on the New York Mercantile Exchange, the April contract for West Texas Intermediate (WTI) climbed by 2.63%, hitting $76.63 per barrel.
Reports indicate that a container ship passing through the Strait of Hormuz was struck by projectiles, causing damage to the vessel.
The ongoing rise in oil prices could significantly impact India’s import bill. If crude oil prices increase by $1 per barrel for the entire year, India’s import bill could rise by approximately ₹16,000 crores.
However, government sources state that India currently maintains a relatively secure position regarding crude oil, LPG, and LNG supplies. The country has about 25 days’ worth of crude oil reserves and an equivalent stock of petroleum products, including oil en route to Indian ports.
India imports over 85% of its total crude oil needs, with around 50% sourced from Middle Eastern countries, primarily transported through the Strait of Hormuz. This supply route has been affected since the Iran war.
Nevertheless, India has diversified its oil sources by increasing imports from Africa, Russia, and the United States, thereby enhancing energy security through strategic reserves.
In recent years, India has expanded its oil imports from countries beyond the Gulf, reducing reliance on the Strait of Hormuz for significant oil supplies.
In the fiscal year ending March 31, 2025, India spent $137 billion on crude oil imports. In the first ten months of the current fiscal year (April 2025 to January 2026), the country spent $100.4 billion on importing 206.3 million tons of crude oil.
– DBP/
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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