Context: India’s crude oil import volume declined by 4.3% in April 2026, but the import bill surged sharply because of rising global crude prices amid the West Asia conflict and concerns over disruption in the Strait of Hormuz.
1. Strait of Hormuz
- Strategic chokepoint between Iran and Oman
- Connects Persian Gulf with Gulf of Oman and Arabian Sea
- Nearly one-fifth of global petroleum trade passes through it
- Critical for India’s energy security due to heavy dependence on West Asian oil
2. India’s Energy Dependence
- India imports nearly 85% of its crude oil requirement
- Higher crude prices increase inflation, Current Account Deficit (CAD) and import burden
- Rising freight costs can further increase transportation and logistics expenses
