India's Tankers Navigate Hormuz as Dozens Remain Stranded Amidst Regional Disruptions

Indian-flagged tankers have begun transiting the Strait of Hormuz, with some receiving permission from Iran, while at least 28 other vessels destined for India remain stranded near the critical waterway. The situation arises amidst regional disruptions, impacting India's energy supplies, particularly liquefied petroleum gas (LPG). India has engaged in diplomatic efforts and implemented domestic measures to address potential shortages.

Passage of Indian Vessels

Two Indian-flagged tankers carrying liquefied petroleum gas (LPG) transited the Strait of Hormuz safely early Saturday morning, after receiving permission from Iran. Rajesh Kumar Sinha, Special Secretary of the Ministry of Ports, Shipping and Waterways, confirmed their passage en route to India.

This passage follows other recent transits. In recent days, eight India-flagged vessels successfully traversed the Strait, including two LPG carriers anticipated to arrive in India by Tuesday or Wednesday. Earlier in the previous week, two additional India-flagged vessels carrying LPG also passed through the Strait, reportedly navigating close to the Iranian coastline.

Vessels Awaiting Transit

The Indian government has confirmed that a total of 28 ships destined for India are currently stranded near the Strait of Hormuz. These include vessels transporting crude oil, LPG, and liquefied natural gas (LNG).

• Foreign-flagged vessels (10): Four crude oil tankers, three LPG carriers, and three LNG carriers.
• India-flagged vessels (18): Four crude oil tankers, three LPG carriers, and one LNG carrier.

Additionally, one other Indian tanker is reported to be in the region, loading LPG. Authorities have affirmed that all 485 Indian seafarers aboard these vessels are safe. India's immediate focus is to secure safe passage for its flagged vessels carrying essential cargoes, especially LPG.

Context of Strait of Hormuz Disruption

The situation in the Strait of Hormuz follows a period of restricted traffic. Iran had implemented these restrictions after what it described as an attack by the United States and Israel late last month. Other reports link the disruption to the broader Middle East conflict.

The Strait is a significant maritime passage, historically handling approximately one-fifth of global oil supplies. The ongoing restrictions have contributed to a shortage of cooking gas in India, which is the world’s third-largest crude oil importer and relies significantly on these supplies.

Iran had previously indicated it would not permit supplies for the U.S. or its allies to exit the Strait.

Diplomatic and Domestic Responses

Mohammad Fathali, Iran’s ambassador to India, stated on Saturday that Tehran permitted "certain" Indian vessels to pass through the Strait of Hormuz, without specifying the exact number. India had sought exemptions from the restrictions. Prime Minister Narendra Modi reportedly discussed the transit of goods and energy from the Gulf with Iran’s President Masoud Pezeshkian on Thursday.

Domestically, in response to the potential cooking fuel shortage, the Indian government invoked emergency powers last week. These powers direct refiners to maximize LPG production and reduce sales to industrial sectors to safeguard supplies for the country's 333 million homes with LPG connections.

The Ministry of Petroleum and Natural Gas also announced an amendment to its supply order on Saturday. This amendment prohibits consumers with piped natural gas (PNG) connections from obtaining, retaining, or refilling domestic LPG cylinders. Government oil companies are also barred from providing new LPG connections or refills to consumers already utilizing PNG.