India's Energy Security Crisis: Policy Gaps and Geopolitical Vulnerabilities

The Hindu - Opinion · 12 Mar 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

India's dependence on imported oil (90% of needs) exposes vulnerabilities amid West Asia conflicts, highlighting policy shortcomings in energy security, communication strategies, and geopolitical balancing between US and Russian oil imports.

Key points

Energy Dependence: India imports 90% of its oil needs, making it highly vulnerable to supply chain disruptions, particularly through the Strait of Hormuz, a critical chokepoint for global oil trade.

Policy Measures: The government's push for ethanol and biofuels aims to reduce oil import dependence, but these measures remain marginal in addressing the vast and growing energy demands of an economy expanding at 6%-8% annually.

Geopolitical Balancing: India faces pressure from the US to reduce Russian oil imports, while West Asia conflicts underscore the strategic importance of diversifying energy sources, including maintaining ties with Russia.

Communication Failures: The government's delayed and opaque communication during the fuel crisis exacerbated public panic, revealing gaps in crisis management and policy transparency.

Pradhan Mantri Ujjwala Yojana (PMUY): While successful in providing LPG connections to households, the scheme has inadvertently strained commercial LPG supplies, impacting restaurants and hotels due to unmet demand.

[GS3-Economy] The fuel crisis underscores the need for long-term energy policies that balance domestic production, renewable energy integration, and strategic reserves to mitigate external shocks.

Way Forward: India should accelerate diversification of energy sources, enhance strategic oil reserves, improve crisis communication frameworks, and negotiate flexible trade terms to balance US and Russian oil imports.

Key terms

Strait of Hormuz

A critical maritime chokepoint between the Persian Gulf and the Gulf of Oman, through which 21 million barrels of oil pass daily. Its geopolitical significance for India lies in ensuring uninterrupted energy supplies, as disruptions here can severely impact India's oil imports and economy.

Pradhan Mantri Ujjwala Yojana (PMUY)

A government scheme launched in 2016 to provide free LPG connections to women from below-poverty-line households. While it has expanded clean cooking access, its success has also exposed supply chain limitations and the need for scalable energy infrastructure.

Ethanol Blending

A policy aimed at mixing ethanol with petrol to reduce fossil fuel consumption and curb emissions. For UPSC, it highlights the intersection of energy security, agricultural surplus utilization (sugarcane), and environmental sustainability.

Essential Commodities Act

A legislative tool allowing government intervention in supply chains during shortages. Its recent invocation for LPG underscores its role in crisis management, but also reveals systemic vulnerabilities in India's energy governance.