India Diversifies Energy Imports, Boosts Russian Crude

India has announced that it is in a 'very comfortable position' regarding crude oil, petroleum products, and LPG supplies, despite concerns over potential disruptions through the Strait of Hormuz. This confidence stems from the country's successful diversification of its energy import sources. Notably, India's crude oil imports from Russia have significantly increased, reaching 20% of total imports in February 2024. Additionally, India has begun importing LPG from the United States since January, with long-term contracts in place. Government sources have clarified that the Mangalore Refinery and Petrochemicals Limited refinery is fully operational and well-stocked. Indian refiners, including Mangalore Refinery and Petrochemicals Limited and Hindustan Petroleum, have also resumed purchasing Russian crude cargoes, influencing the pricing of Urals crude relative to Brent Crude. Authorities are also planning to utilize petrochemical output for domestic consumption and have directed LPG refineries to increase production to ensure adequate availability.