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Mawratanews.lk | Sri Lanka Latest Sinhala News and Headlines
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India Emerges as Key Energy Lifeline for Neighbours Amid Iran Conflict

April 5, 2026
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Reading Time: 19 mins read
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India Emerges as Key Energy Lifeline for Neighbours Amid Iran Conflict
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As the Iran conflict continues to disrupt global energy flows and constrain movement through the Strait of Hormuz, a new regional dynamic is taking shape with India at its centre. Several neighbouring countries facing fuel shortages and supply uncertainty are increasingly seeking assistance from New Delhi. From emergency fuel shipments to ongoing requests for diesel and LPG, India is being viewed as a critical fallback during the crisis. The situation highlights the region’s heavy reliance on Hormuz-linked energy routes while underscoring India’s growing role as a dependable partner in maintaining stability across South Asia and the Indian Ocean.

India responds as energy requests increase

India has confirmed that multiple neighbouring countries have requested energy support.

“We have received requests from some neighbouring countries for energy exports, including diesel from Bangladesh. Domestic availability and production will be factored in before any decision is taken,” said MEA spokesperson Randhir Jaiswal.

He also addressed the broader human impact of the conflict, noting, “Around 10 million Indians live in the GCC countries. All of them are safe, and we remain in constant communication with them. It is unfortunate that, so far, eight Indians have been killed in this conflict, and one is still missing.”

Nepal raises LPG supply concerns

According to The Times of India, Nepal has requested an increase in its liquefied petroleum gas (LPG) supply from India. The country currently receives approximately 48,000 tons per month from Indian Oil and has sought an additional 3,000 tons.

However, Nepal Oil Corporation spokesperson Manoj Kumar Thakur stated that only contracted deliveries would be fulfilled for now. Authorities have introduced rationing measures, limiting refills to half cylinders in an effort to extend available supplies.

Sri Lanka receives emergency fuel support

According to The Economic Times, India delivered 38,000 metric tons of fuel to Sri Lanka in March, including 20,000 metric tons of diesel and 18,000 metric tons of petrol. The shipment followed discussions between Prime Minister Narendra Modi and President Anura Kumara Dissanayake.

Dissanayake stated, “Spoke with PM Modi a few days ago about the fuel supply disruptions Sri Lanka is facing due to the Middle East conflict. Grateful for India’s swift support. 38,000 MT of fuel arrived in Colombo yesterday. My thanks also to EAM Jaishankar for his close coordination.”

Sri Lanka has implemented strict conservation measures, including the temporary closure of schools and restrictions on transport services.

Bangladesh seeks increased diesel imports

Bangladesh has also requested additional diesel supplies from India, which currently provides around 180,000 tons annually.

In late March, India supplied at least 7,000 tons of diesel via pipeline, following earlier shipments of 15,000 tons and 5,000 tons. Bangladesh, which depends heavily on fuel imports from West Asia, has introduced rationing measures, including limits on fuel purchases.

Maldives explores supply arrangements

According to NDTV, the Maldives has approached India for both short-term and long-term petroleum supply arrangements.

“The government of Maldives has also reached out to us for supply of petroleum products both on a short-term and long-term basis. Maldives’ request is being examined keeping in mind our own availability and our own needs,” Jaiswal said.

Mauritius and Seychelles in discussions

India is also engaged in discussions with Mauritius and Seychelles regarding the evolving energy situation, although no formal requests have been made so far.

Experts highlight strategic implications

Experts suggest that India’s response could enhance its regional influence. Ashok Malik of The Asia Group told Bloomberg, “I am sure it will get India goodwill as all countries are struggling. While India’s energy ties with its neighbours are robust, it may not be able to resolve all of their supply challenges.”

India faces its own energy challenges

At the same time, India is managing its own energy concerns. The country is in discussions with Iran and other nations to secure safe passage for tankers stranded in the Strait of Hormuz. Government officials report that six LPG carriers have been moved out, while 18 India-flagged vessels remain stuck.

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