The Strait of Hormuz tensions are driving up crude oil acquisition costs for Indian refineries significantly. Additional expenses from war-risk insurance premiums and elevated shipping fees are expected to increase India's landed crude expenses by approximately $2-3 per barrel. VLCC tanker voyages could incur supplementary insurance costs ranging from $200,000 to $500,000, reflecting heightened geopolitical risks in critical maritime trade routes. These elevated operational expenses will ultimately impact India's energy procurement strategy and refinery economics.

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