New Delhi: In a world fraught with geopolitical tensions and volatile oil markets, India stands resilient with a strategic petroleum reserve sufficient for 74 days of national consumption.
Petroleum and Natural Gas Minister Hardeep Singh Puri has assured the Parliament that the country is well-prepared to weather any global disruptions, emphasising the critical role of robust energy stockpiles for a rapidly advancing economy like India’s.
Speaking in the Rajya Sabha on Monday, Puri highlighted that these reserves, encompassing both strategic stockpiles and refinery inventories, position India strongly against potential crises such as wars, supply halts, or sharp price surges. “India is a fast-growing nation, and secure, strong oil reserves are essential for us,” he stated, underscoring the government’s proactive stance.
The strategic reserves, managed by the Indian Strategic Petroleum Reserves Limited (ISPRL), boast a total capacity of 5.33 million metric tonnes of crude oil, stored across three underground facilities in Andhra Pradesh and Karnataka. While the exact volume fluctuates with market dynamics, the current 74-day buffer falls short of the International Energy Agency’s (IEA) recommended 90-day minimum. Acknowledging this, Puri noted that India feels secure with the existing level but remains open to expansions in the future.
As the world’s third-largest crude oil consumer, India also ranks fourth in refining capacity at 260 million metric tonnes annually, with plans to scale up to 320 million. It is the fifth-largest exporter of petroleum products, bolstered by refineries on both eastern and western coasts that ensure seamless supply chains.
This revelation comes at a pivotal time, as global energy demands soar and supply chains face unprecedented strains. Experts view India’s reserves as a strategic shield, enabling the nation to maintain economic momentum without succumbing to external shocks.