Petrol above ₹100 is a warning. India’s energy security cannot depend on one strait

A litre of petrol costs ₹102.12 in Delhi and ₹111.21 in Mumbai. For a family that commutes on a two-wheeler, every rupee of that is felt. And the reason has little to do with India. Since March, a war between the United States, Israel and Iran has largely closed the Strait of Hormuz, the route for about a fifth of the world’s oil. Iran now says the strait will stay shut until the US meets seven conditions.

India imports most of the crude it uses. When Brent crude went above $100 a barrel in March and peaked at about $126, India had no say in it. Indian sailors have died in attacks on merchant ships. The Navy has had to escort Indian-flagged vessels. And with the Houthis now holding islands in the Bab al-Mandeb, the Red Sea route to Europe is at risk too.

Hoping is not a policy

The temptation is to wait for a deal in Islamabad or New York and expect prices to fall. Even if they do, the next crisis will come. India’s exposure is structural and needs a structural response.

• Bigger reserves. India’s strategic petroleum reserves cover days, not months. Building more storage, and filling it when prices fall, is cheap insurance.
• More suppliers, more routes. Crude from the Americas, West Africa and Russia that avoids the Gulf chokepoints reduces risk, even if it costs a little more in normal times.
• Make ethanol work for drivers. An IIT Delhi study says E85 must sell for about 25% less than petrol to match running costs. If the government wants flex-fuel cars, the pricing must make sense to the buyer.
• Electrify the two-wheeler. Two-wheelers use about 60% of India’s petrol. Every scooter that moves to electric power is a small reduction in a strategic vulnerability.

Be honest with consumers

Governments of every party have been tempted to keep pump prices artificially low, especially before elections, and leave oil companies to absorb the losses. That only delays the bill. Better to explain the costs openly, protect the poorest through targeted support, and use this crisis to cut a dependence that has outlasted many promises to end it.

The Rostrum View is The Daily Rostrum’s house editorial. Disagree? Send us a guest editorial.

Sources: Our report on the Hormuz crisis, Our report on E85, Goodreturns fuel prices, Wikipedia: 2026 Strait of Hormuz crisis.