By Tsvetana Paraskova of OilPrice.com

India’s Prime Minister Narendra Modi has urged the government to urgently explore an increase in the use of alternative energy sources, including biogas as a substitute for liquefied petroleum gas (LPG), as the Middle East crisis is choking oil and gas supply to the world’s third-largest crude importer.

Modi also urged ministers to move faster with implementing reforms to turn India into a developed nation by 2047, the goal for its 100th independence anniversary.

India has been grappling with the energy crisis that the Iran war created. Oil supply from the Middle East was severely constrained, forcing India to boost Russian oil imports – with a U.S. blessing in the form of waivers for Russian crude on tankers – and seek alternative crude and LPG supply from regions other than the Middle East.

Earlier this week, reports emerged that India plans to send empty tankers into the Strait of Hormuz to load oil supplies from the Gulf producers.

This would be a first such Indian move west of the chokepoint for loading crude and LPG since the Iran war began, sources with knowledge of the matter told Bloomberg on Wednesday.

India has boosted imports of oil and LPG from places that don’t need the Strait of Hormuz, but costs are usually higher, and the journey times are much longer compared to the shorter routes from the Persian Gulf to India.

At any rate, India will likely need approval from the U.S. to move through the U.S. blockade in the Gulf of Oman first, and then from Iran for clearance in the Strait of Hormuz en route to the export ports in the Persian Gulf.  

Two and a half months after the Middle East conflict began, one of the highest-performing emerging markets in recent years is scrambling to contain the oil shock that is spreading to consumer prices, foreign exchange reserves, and economic growth.