India's Energy Diplomacy: Why Neighbours Are Turning To New Delhi In A Time Of Crisis

(MENAFN- Khaleej Times) South Asia is once again witnessing a familiar pattern during moments of global turbulence. When supply chains falter and markets panic, many countries in the region look to India. The latest global energy disruption triggered by escalating conflict in West Asia and disruptions to supply routes from the Persian Gulf has reinforced this dynamic. As fuel prices surge and supplies tighten, several of India's neighbours have approached New Delhi for assistance in securing petroleum products.

Countries including Bangladesh, Sri Lanka and the Maldives have sought additional fuel supplies from India, while Nepal has been grappling with shortages of LPG and other petroleum products. The requests reflect both the severity of the current energy crunch and the growing role India plays as a stabilising economic partner in South Asia.

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The current shortages are tied to a wider geopolitical shock. Rising tensions and military confrontation in the Middle East have disrupted oil and gas shipments, especially through the Strait of Hormuz, one of the world's most important energy chokepoints through which a significant share of global oil and LNG flows.

When such supply lines face disruption, the consequences ripple across energy importing regions like South Asia. Countries with limited domestic refining capacity or storage infrastructure are particularly vulnerable to sudden price spikes and logistical disruptions.

Bangladesh provides a stark example. The country has had to turn to the expensive spot LNG market after disruptions to long term supply contracts and has already imposed fuel rationing and reduced energy use to stabilise its economy. In such circumstances, securing refined petroleum products from nearby suppliers becomes not only practical but essential.

India's refining strength

India's ability to respond to such requests is rooted in a structural advantage. It is one of the world's largest refining hubs. Over the past two decades, the country has built massive refining capacity and developed the ability to export refined petroleum products to markets across Asia and Africa.

This transformation has quietly altered India's role in regional energy security. Instead of being just another importer of crude oil, India now acts as a major processor of crude into diesel, petrol and aviation fuel that can be exported to neighbouring economies.

As a result, when shortages arise in nearby countries, India is often the closest and most reliable supplier. New Delhi's policymakers are currently reviewing requests for additional supplies while balancing domestic energy requirements.

India's response to regional crises is not new. For decades New Delhi has followed a consistent approach of supporting neighbouring countries during difficult times. Whether it is natural disasters, economic distress or supply disruptions, India has repeatedly stepped forward to help stabilise the region.

A notable example came during Sri Lanka's economic crisis in 2022 when India extended more than four billion dollars in assistance through credit lines, currency support and essential supplies including fuel and food. This assistance helped Sri Lanka maintain essential services at a time when the country was facing severe shortages.

Similarly India has repeatedly supported Bangladesh during energy disruptions and infrastructure challenges. The Bangladesh India Friendship Pipeline, which connects India's Numaligarh refinery to Parbatipur in Bangladesh, has strengthened long term fuel supply cooperation between the two countries.

Nepal too has benefited from India's support through the Motihari Amlekhganj petroleum pipeline, which ensures a reliable supply of fuel and reduces logistical disruptions along the border.

These initiatives show that India's assistance is not limited to emergency responses. It is increasingly being built into long term infrastructure partnerships that strengthen regional resilience.

From energy trade to strategic trust

Beyond economics, energy cooperation has geopolitical implications. The willingness of neighbouring countries to seek assistance from India reflects a deeper level of trust and interdependence.

During moments of crisis India has often responded with financial support, fuel shipments and logistical assistance. Such measures build goodwill and reinforce India's image as a dependable regional partner.

In contrast to distant suppliers India offers geographical proximity, established logistical networks and diplomatic familiarity. For smaller South Asian economies facing immediate shortages these factors make India the natural first call.

Energy assistance in this context becomes more than just trade. It acts as a stabilising force for the region by helping prevent economic distress from escalating into political instability.

Balancing support with domestic needs

Of course India must balance its regional responsibilities with domestic priorities. With more than 1.4 billion people and a rapidly growing economy the country itself remains heavily dependent on imported crude oil.

Officials have therefore emphasised that decisions on additional exports will depend on domestic supply levels and refining capacity. Maintaining energy security at home remains the first priority.

Yet India's large refining base and diversified energy procurement strategy provide a cushion that many neighbouring countries lack. This allows New Delhi some flexibility in supporting regional partners during periods of stress.

The current fuel shortages also highlight a deeper truth. South Asia's energy security will increasingly depend on cooperation rather than isolation.

Shared pipelines, cross border electricity trade, regional energy grids and coordinated emergency supplies could transform how the region manages crises. Initiatives connecting Bangladesh, Bhutan, India and Nepal already aim to strengthen such cooperation across infrastructure and energy sectors.

If these efforts continue to expand South Asia could gradually move from a patchwork of vulnerable energy markets to a more integrated and resilient regional system.

India's emerging role

The requests from Bangladesh, Sri Lanka and the Maldives are therefore about more than just fuel shipments. They illustrate how India's economic scale, industrial capacity and geographic position are reshaping its role in the region.

In moments of global disruption countries often turn to the power that is closest, most capable and most trusted. For South Asia that country increasingly appears to be India.

India's history of helping its neighbours during difficult times has built a foundation of trust that continues to shape regional cooperation today. In an uncertain world this spirit of partnership may prove to be one of South Asia's greatest strengths.

The writer is a commentator on political and current affairs. He has previously served as the media adviser to the Jammu and Kashmir Chief Minister.

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