India’s Strategic Oil Reserves Reach Two-Third Capacity Amid Supply Concerns

India’s strategic petroleum reserves (SPRs) currently hold an estimated 3.372 million tonnes of crude oil, according to data presented in Parliament. The reserves represent nearly two-thirds of the country’s total storage capacity.

The update was shared by junior Petroleum Minister Suresh Gopi, citing data from Indian Strategic Petroleum Reserve Ltd. He also noted that reserve levels may vary depending on market conditions such as supply dynamics and consumption trends.

Current Reserve Levels and Coverage

India’s existing SPRs store unrefined crude oil intended for use during supply disruptions. In addition to these reserves, fuel stocks held by oil marketing companies contribute to overall energy security.

Combined reserves currently provide coverage for approximately 74 days of demand. This includes both crude stored in SPRs and refined petroleum products like petrol and diesel.

Expansion Plans for Strategic Storage

The government is expanding SPR capacity by an additional 6.5 million tonnes. This includes the development of a new facility in Odisha with a storage capacity of 4 million tonnes.

Existing storage capacity in Karnataka is also being increased by 2.5 million tonnes. These projects aim to strengthen India’s ability to manage supply disruptions.

Supply Risks from West Asia

Supply of crude oil and natural gas from West Asia remains a key concern for India. The region is a major source of India’s energy imports.

Disruptions linked to geopolitical tensions have affected tanker movement through critical routes. The Strait of Hormuz, in particular, plays a central role in global energy transportation.

India’s Import Dependence and Consumption

India is one of the world’s largest energy consumers, with daily crude demand estimated at 5.5 to 6 million barrels. In FY26, the country spent around $110 billion to import 226 million tonnes of crude, meeting about 88.7% of its requirements.

Before recent geopolitical tensions, India imported 2.1 to 2.6 million barrels per day from Gulf nations such as Iraq, Saudi Arabia, the UAE and Kuwait. Nearly 40% of these imports pass through the Strait of Hormuz, highlighting a key supply vulnerability.

Read More: Rupee Hits Record Low of 93.94 Amid Oil Surge and Global Tensions.

Conclusion

India’s current strategic reserves provide a partial buffer against supply disruptions while expansion plans are underway. The combined reserve coverage of 74 days reflects both crude and refined fuel availability.

Ongoing capacity additions aim to enhance resilience against external shocks. The developments highlight the importance of diversified supply and strategic storage in managing energy security.

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