India expands crude imports with UAE emerging as a major supplier

India has expanded its crude oil imports to about 43 countries amid disruption to supplies through the Strait of Hormuz, with the UAE emerging as one of its major suppliers, a senior official said.

Neeraj Mittal, the Secretary of India's Ministry of Petroleum and Natural Gas, said that, while Russia continues to be the top oil supplier to the South Asian nation, India has also started importing from other countries such as Venezuela.

“India has really taken long-term measures in terms of diversifying its energy sourcing strategy, and that has paid well during the recent crisis,” Mr Mittal told The National in an interview.

“We have been able to source from many places across the world wherever supplies were available, and as a result, India is perhaps the only country in the world where the prices have so far [gone up] pre-crisis to crisis only by 7 per cent.”

India has also increased energy purchases from the US, with liquefied petroleum gas supplied by America making up 67 per cent of the total imported, from 10 per cent at the beginning of the year, he added.

“There were no shortages, no rationing, and as we speak, maybe India is still the only country where the energy demand is still growing. Many countries have seen demand destruction, because prices have gone up through the roof.”

Energy supplies to global markets were disrupted after the Strait of Hormuz was effectively shut following the start of the Iran war on February 28. The vital waterway accounted for about a fifth of global oil and gas flows prewar, forcing crude-dependent countries to look for alternative supplies.

India, one of the fastest-growing economies in the world, depends heavily on oil imports. Its reliance on imported crude increased to above 90 per cent in fiscal year 2026, from 55 per cent in the 1999 fiscal year, consultancy EY said in a June report.

UAE key supplier of crude

The UAE has become one of the major hydrocarbon suppliers to India, with volumes increasing since the conflict began and as energy ties strengthened, Mr Mittal said.

“In the recent times and even during the crisis, I think UAE has been a great partner, and we have supplies of LPG, LNG [liquefied natural gas], crude, all of them really in a reliable manner from UAE,” he said.

"Definitely, the UAE has become a major supplier."

The UAE is providing about 15 to 20 per cent of total energy imports, including significant shares of LPG at 25 per cent, LNG at 10 per cent and crude oil at 15 per cent, he added.

Show caption: President Sheikh Mohamed with Indian Prime Minister Narendra…

The UAE and India are strengthening bilateral co-operation in the energy sector, spanning different areas, including crude storage and gas supply.

During Indian Prime Minister Narendra Modi’s visit to the UAE in May, Adnoc signed an agreement with Indian Strategic Petroleum Reserves to expand its crude oil storage capacity in India to 30 million barrels, with a potential crude storage opportunity in Fujairah.

India and the UAE are "deeply connected" to each other, Mr Mittal said. "We have a very vibrant relationship, and this spans especially in energy, and we hope that this will deepen further as world realises that black swan events can upset all your calculations if you have dependencies which are tied to either one geography or one type of fuel.

“Risk resilience can only grow when you have dependable partners across the world. And UAE is one of the top partners in that effort.”

Oil prices have remained elevated due to the Iran war, raising import bills for energy-importing countries such as India. Oil prices have surged by more than 45 per cent since the war began, with global benchmark Brent currently trading close to $105 per barrel. It briefly touched $126 per barrel in April at the peak of the conflict.

“I think there is a huge difference in the energy prices from pre-crisis and post-crisis," Mr Mittal said, highlighting the extreme volatility in prices.

"Any economy can handle very easily stable prices and plan your future. I am more worried about the volatility than the absolute levels of crude."

India is also focusing on domestic oil and gas exploration to reduce reliance on crude imports.

In July, it launched a $9 billion ultra-deep and deep-water oil exploration programme as well as a $2.5 billion initiative for converting waste into biogas.

“These efforts are all aimed at bringing that healthy balance of import versus self reliance," Mr Mittal said.