New Delhi: With the conflict in the Middle East leading to disruption in oil supplies and soaring prices in the global market, South Asian countries are turning to India, rather than China, to tide over the fuel crisis, according to an article published by OCRA (Organisation for Research on China and Asia).
For instance, last year, Sri Lanka received $3.7 billion from China as foreign direct investment for an oil refinery with a 200,000-barrel capacity at southern Hambantota. On the other hand, India has operated a less financially-intensive, but functional approach.
Leveraging its geographical proximity to Bangladesh, New Delhi has built a cross-border energy pipeline with Dhaka, transporting diesel from the Numaligarh refinery in Assam to Parbatipur in Bangladesh since 2023.
With Nepal, India has a B2B agreement between the Indian Oil Corporation and the Nepal Oil Corporation since 2024 to enhance petroleum infrastructure, integrating its energy system with neighbouring economies. It has enabled faster mobilisation of supply, making its energy partnerships more immediately actionable under stress conditions.
The article points out that Sri Lanka, after receiving urgent fuel assistance from India in March, sought additional support from China only in early April. Although Beijing subsequently offered assurances, the scale and modalities of its assistance remain unclear.
A similar dynamic is visible with the Maldives. Despite the Maldives’ pro-China alignment during the initial phase of President Mohamed Muizzu’s tenure, Male did not approach Beijing for fuel assistance and, instead, turned to India to meet its immediate needs. Taken together, these cases show a clear pattern of smaller South Asian states prioritising responsiveness over depth of economic or political ties in times of acute stress.
Since March, India has supplied 38,000 metric tonnes of petroleum to Sri Lanka following Colombo's request, delivered 22,000 metric tonnes of diesel to Bangladesh via the Friendship Pipeline and is currently examining additional supply requests from Nepal and the Maldives.
Crude oil prices near $100 over Hormuz tensionsMumbai: Global crude oil prices edged higher to nearly $100 a barrel again as traders and investors analysed the outlook for US-Iran peace talks following US President Donald Trump’s announcement to extend a fragile ceasefire, even as the Strait of Hormuz remained constrained. International benchmark Brent crude futures traded at $99.29 per barrel, up 0.82 per cent, while US West Texas Intermediate (WTI) rose 1.15 per cent to $90.71. Both benchmark contracts had gained around 3 per cent in the previous session. On the Multi Commodity Exchange (MCX), crude oil declined from previous close levels, hitting an intraday low of Rs 8,382, down 0.65 per cent or Rs 55 as of around 10:30 am. Moreover, the naval blockade continued, with the Strait of Hormuz remaining constrained. |
