India's Strategic Oil Reserves Can Sustain Only 9–10 Days of Crude Imports: Report

India's strategic petroleum reserves remain limited compared with other major energy-importing nations, according to a PTI news report citing a Council on Energy, Environment and Water (CEEW) report.  

The study highlights the country's dependence on imported fuels and identifies several vulnerabilities that could affect long-term energy security. 

Strategic Reserves Lag Global Peers 

The report, titled "How Secure is India's Energy Future? Assessing Accessibility, Reliability, and Affordability," estimates that India's strategic petroleum reserves are sufficient for only 9-10 days of net crude oil imports. In contrast, Japan and South Korea maintain reserves that can cover more than 200 days of imports. 

It also notes that over 85% of India's crude oil imports originate from just 6 countries, including Russia and key suppliers in West Asia, limiting supply diversification. 

Import Dependence Creates Multiple Risks 

Council on Energy, Environment and Water Fellow Hemant Mallya said, “Disruptions in crude oil, LNG, LPG, coal, or key shipping routes can quickly affect cooking costs, transport fuel prices, fertiliser subsidies, industrial competitiveness, and inflation.” 

The report adds that India imports nearly half of its natural gas supply as liquefied natural gas but lacks dedicated strategic gas storage facilities, leaving fertiliser plants and city gas distribution networks exposed to supply disruptions. 

Clean Energy and Supply Chain Challenges 

The report highlights India's continued reliance on imported coking coal from Australia for steel production and exposure to Indonesian export policies for non-coking coal.  

It also notes that declining domestic coal quality and rising production costs are reducing coal's traditional cost advantage. 

It adds that greater adoption of clean energy could lower dependence on imported fossil fuels while increasing reliance on critical minerals, technologies and industrial inputs. 

Read More: OMC’s Fuel Losses Decline; Petrol Under Recovery Dips to ₹3/Litre! 

Conclusion 

The report underscores that India's energy security depends not only on fuel availability but also on diversification of supply sources, storage capacity and resilience across emerging clean energy supply chains.   

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