Amid rising geopolitical tensions between Israel and Iran, concerns have mounted globally over the stability of oil supplies. In this context, India’s Petroleum and Natural Gas Minister, Hardeep Singh Puri, has assured the nation that India’s fuel supply remains secure and stable.

On June 17, 2025, Minister Puri stated that India is “comfortably placed” to meet its energy requirements despite the escalating Israel-Iran conflict and the resulting volatility in global oil markets. He attributed this preparedness largely to Prime Minister Narendra Modi’s visionary leadership, which has focused on diversifying India’s oil import basket and significantly increasing domestic fossil fuel exploration.

During a high-level review meeting with officials from the petroleum ministry and heads of public sector oil companies like Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL), the minister highlighted that India has taken proactive steps to shield itself from external shocks.

Diversification of Oil Imports

India’s strategy under PM Modi has involved reducing dependence on any single source country by diversifying suppliers. This strategy has helped mitigate risks arising from regional conflicts such as the current situation in the Middle East.

Domestic Exploration Push: Andaman as India’s “Guyana Moment”

One of the key initiatives emphasized by Minister Puri is the focus on expanding domestic oil and gas exploration, especially offshore areas like the Andaman sedimentary basin. Puri hinted that recent exploration activity in the Andamans shows promising potential, which he termed India’s possible “Guyana moment” — a reference to significant oil discoveries off the coast of Guyana that transformed that country’s energy prospects.

India currently has about 3.5 million sq km of sedimentary basins, but only around 8% has been explored. The government recently opened up an additional 1 million sq km for exploration, leading to a surge in bids under the Open Acreage Licensing Policy (OALP). In fact, 38% of bids in nine rounds have targeted these new areas, and more interest is expected in the upcoming rounds.

Despite the high costs of offshore drilling — with wells costing up to USD 100 million compared to USD 4 million for onshore wells — companies like ONGC have ramped up drilling activity to historic levels.

India’s Energy Trade Links and Risks

The minister’s reassurance comes amid concerns over India’s trade relations with both Israel and Iran, two countries deeply involved in the current conflict. In FY25, India exported goods worth USD 1.24 billion to Iran and imported USD 441.9 million in return. Trade with Israel was even higher, with USD 2.15 billion in exports and USD 1.61 billion in imports.

While prolonged instability in the region could impact shipping lanes and push up oil prices globally, the minister stated that India is presently insulated from immediate supply shocks due to its diversified energy sourcing and increased domestic production.

Overall, India’s energy security is strengthened by proactive government policies focused on import diversification, domestic exploration, and strategic stockpiling, ensuring that despite geopolitical tensions in the Middle East, the country’s fuel supply remains “comfortably placed.”

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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