India’s oil & gas sector: Navigating a geopolitical storm

India’s oil and gas industry is grappling with a geopolitical storm in West Asia that drove Brent crude prices to USD 117.3 per barrel in April 2026. The crisis has disrupted critical supply routes, leading to a 10% drop in LNG deliveries and exposing India's record-high import dependence for both crude and gas. This environment has prompted urgent government interventions to bolster strategic reserves and accelerate the transition toward cleaner energy alternatives.

The West Asia crisis has significantly strained energy markets, pushing Brent crude to a high of USD 117.3 per barrel in April 2026. These geopolitical tensions have specifically hampered liquefied natural gas (LNG) logistics, with deliveries falling by 10% due to disruptions in the Strait of Hormuz. This volatility is particularly impactful for India, as the country’s dependence on imports has reached record levels, standing at 89.4% for crude oil and 50.6% for natural gas.

In response to these challenges, Indian policymakers are taking decisive steps to safeguard energy security. These measures include the prioritization of gas allocation, the expansion of the country’s strategic petroleum reserves, and efforts to boost regasification capacity. Despite the external headwinds, India's refining sector has remained resilient, with petroleum consumption recording a 2.7% year-on-year growth in the fourth quarter of fiscal year 2026. Refiners are currently focused on diversifying their crude sources and increasing the processing of high-sulphur crude to maintain operational stability.

While domestic production continues its downward trend, the government is implementing reforms aimed at reviving exploration and production across the country. Looking forward, India is balancing immediate security needs with a long-term strategic shift toward an energy transition. This transition is being driven by aggressive ethanol blending targets and the expansion of City Gas Distribution (CGD) networks, signaling a move toward a more secure and sustainable energy system amidst persistent global risks.