India expands crude imports with UAE emerging as a major supplier

India has significantly increased its crude oil imports from 43 different countries due to disruptions in supplies through the Strait of Hormuz. According to Neeraj Mittal, Secretary of India's Ministry of Petroleum and Natural Gas, the UAE has emerged as one of the major suppliers of crude oil to the South Asian nation. Despite Russia continuing to be the top supplier, India has diversified its energy sourcing strategy, which has proven beneficial during the recent crisis.

The country has managed to keep energy prices up only by 7 per cent compared to pre-crisis levels, making it one of the few countries where demand has not been affected despite rising prices. India has also increased its purchases of liquefied petroleum gas from the US, with this energy source now accounting for 67 per cent of the total imports, up from 10 per cent at the beginning of the year.

The UAE has become a key supplier of crude oil to India, with the country providing about 15 to 20 per cent of total energy imports, including significant shares of LPG, LNG, and crude oil. The UAE and India are strengthening their bilateral cooperation in the energy sector, including crude storage and gas supply. India has launched a $9 billion ultra-deep and deep-water oil exploration programme and a $2.5 billion initiative for converting waste into biogas to reduce its reliance on crude imports.