A parliamentary committee has flagged India’s heavy dependence on crude oil imports and rising geopolitical uncertainty as major risks to energy security, urging the government to diversify supply sources and strengthen risk management frameworks.

In a report tabled last week, the Public Undertakings Committee said India meets nearly 89 per cent of its crude oil requirement through imports, exposing the country to conflicts, sanctions, civil unrest in oil-producing regions and disruptions along key shipping routes such as the Suez Canal and the Red Sea. Recent global developments, including the Russia–Ukraine war and tensions in West Asia, were cited as having underscored the fragility of India’s energy supply chain.

The committee recommended that the Ministry of Petroleum and Natural Gas and state-run oil companies diversify crude sourcing both geographically and contractually. It also called for expanding strategic petroleum reserves, developing alternative import routes, and institutionalising robust risk management tools, including hedging mechanisms and flexible term contracts, to safeguard against supply shocks.

In addition to geopolitical risks, the panel highlighted environmental challenges facing the oil and gas sector, such as greenhouse gas emissions, air and water pollution, and waste management. It stressed that improving sustainability practices must go hand in hand with measures to strengthen energy security.