India Reviews Fuel Export Requests as Middle East Conflict Disrupts Energy Supplies
Several South Asian nations have formally approached India seeking additional fuel supplies as the ongoing conflict in the Middle East severely curtails energy shipments from the Persian Gulf region. This development follows the effective closure of the strategically vital Strait of Hormuz, which has left multiple countries in the subcontinent with dwindling stockpiles and limited alternative supply routes.
Official Statements and Review Process
During a press briefing, Ministry of External Affairs spokesperson Randhir Jaiswal confirmed that New Delhi has received formal requests from neighboring countries for increased energy exports. "We have received requests from some neighbouring countries for energy exports, including diesel from Bangladesh," Jaiswal stated. He emphasized that domestic availability and production capacity would be carefully evaluated before any decisions are finalized.
Jaiswal further revealed that similar requests from Sri Lanka and the Maldives are also under active review by Indian authorities. The spokesperson made clear that any potential approval for supplying petroleum products must first account for India's own substantial internal energy requirements and security considerations.
Country-Specific Requests and Regional Impact
Nepal: Kathmandu has specifically requested Indian Oil Corporation to increase its monthly supply of liquefied petroleum gas (LPG) by an additional 3,000 tons beyond the existing contractual agreement. Nepal currently receives approximately 48,000 tons of LPG monthly from IOC under established arrangements. The Himalayan nation relies entirely on India for its fuel supplies, and panic buying has prompted authorities to implement distribution restrictions, including reducing regular LPG cylinder weights from 14.2 kilograms to 7.1 kilograms.
Bangladesh: Dhaka has formally asked India to supply additional diesel beyond the 180,000 tons it receives annually under current contracts. Bangladesh's newly elected government faces potential acute fuel shortages, having already implemented austerity measures including shutting fertilizer plants and restricting decorative lighting to conserve power. Energy Minister Iqbal Hassan Mahmood confirmed the request, stating "We have requested them to increase the oil supply slightly considering the crunch time" following meetings with Indian diplomatic representatives.
Sri Lanka: Colombo has been actively exploring multiple avenues to secure fuel supplies, including emergency discussions with Russian diplomatic officials regarding potential oil purchases under temporary U.S. sanctions waivers. According to government data, Sri Lanka spent $3.83 billion on fuel imports last year, with most shipments originating from India and Singapore. State-run Ceylon Petroleum Corporation chairman S Rajakaruna noted that while Sri Lanka lacks sufficient storage capacity for extended reserves, confirmed shipments should meet needs through the end of the current month.
India's Strategic Position and Regional Diplomacy
While India has yet to formally approve the additional fuel requests, its position as the world's fourth-largest refiner provides significant capacity to respond to the regional crisis. This situation presents both challenges and opportunities for New Delhi's foreign policy objectives in South Asia.
Ashok Malik, a New Delhi-based partner at The Asia Group, observed that India has historically stepped in to help meet regional fuel demand during previous crises. "I am sure it will get India goodwill as all countries are struggling," Malik told Bloomberg. However, he cautioned that "While India's energy ties with its neighbours are robust, it may not be able to resolve all of their supply challenges" given the scale of current disruptions.
India's Own Supply Challenges and Adaptations
India itself imports approximately 90% of its annual crude requirements, making it vulnerable to Middle East supply disruptions. In response to the crisis, New Delhi has been actively pursuing alternative supply routes and sources to offset potential shortages.
Earlier this week, India secured approximately 30 million barrels of Russian oil after obtaining a U.S. waiver and has been negotiating with Iran for safe passage of more than 20 tankers through contested waters. In a significant development, the Liberian-flagged tanker Shenlong Suezmax successfully navigated the Strait of Hormuz and arrived at Mumbai port on Thursday, carrying approximately 135,335 metric tonnes (roughly 1 million barrels) of crude oil from Saudi Arabia's Ras Tanura port.
This vessel represents the first India-destined tanker to safely transit the strategic waterway and reach Indian shores amid the intense fighting in the Gulf region, demonstrating both the ongoing risks and potential workarounds in the current energy supply landscape.
The confluence of regional requests and India's own supply considerations creates a complex diplomatic and economic scenario that will test New Delhi's capacity to balance domestic needs with regional leadership aspirations during this ongoing energy crisis.
