India Strategic Oil Reserves 64 Percent Full, Government Informs Rajya Sabha

The Government of India has provided a comprehensive update in the Rajya Sabha regarding the nation's energy security and the current status of its strategic petroleum reserves. Minister of State for Petroleum and Natural Gas, Suresh Gopi, stated in a written reply that India's Strategic Petroleum Reserves (SPR), which serve as a critical buffer during global supply chain disruptions, are currently filled to approximately two-thirds of their total capacity. This disclosure comes amid heightened geopolitical tensions in West Asia, which have raised concerns about global oil market stability.

7% of its total crude oil requirements. To mitigate risks associated with this high dependency, the government has established underground unlined rock cavern storage facilities at Visakhapatnam in Andhra Pradesh, and Mangaluru and Padur in Karnataka, while these facilities are managed by the Indian Strategic Petroleum Reserve Limited (ISPRL). The Minister informed the house that the quantity of crude oil in these reserves fluctuates based on market conditions and actual domestic consumption patterns.

Current Status and Capacity of Strategic Reserves

33 million metric tonnes (MMT). 372 million tonnes of crude oil within these caverns, representing about 64% of the total installed capacity. These reserves are designed to act as a safeguard during emergency situations or sudden spikes in international oil prices, while the government emphasized that this is a dynamic reserve, meaning stock levels are periodically adjusted based on the balance between domestic demand and international procurement schedules.

High Dependency on Crude Oil Imports and Financial Outlay

India remains the world's third-largest energy consumer, with its economy heavily reliant on crude oil imports. During the first 11 months of the current fiscal year (April to February), India imported approximately 226 million tonnes of crude oil. This massive volume of imports required a foreign exchange expenditure of approximately $110 billion. 7% of the country's oil needs are met through imports. 4 billion on importing nearly half of its natural gas consumption, while approximately 60% of the demand for Liquefied Petroleum Gas (LPG) was met through imports.

Maritime Route Vulnerabilities and the Strait of Hormuz

A significant portion of India's energy imports traverses strategically sensitive maritime routes. The Minister highlighted that nearly half of the crude oil arriving from major Gulf suppliers such as Saudi Arabia, Iraq, and the UAE passes through the Strait of Hormuz. The dependency is even more pronounced for LPG, with 85-95% of total imports passing through this narrow waterway. Approximately 30% of natural gas imports also rely on this route. Ongoing conflicts in West Asia have increased security concerns along this corridor, posing risks to the supply chain. While crude oil supplies have been partially balanced by sourcing from Russia and other regions, the vulnerability of gas and LPG routes remains a critical factor.

Expansion Plans for Strategic Storage Infrastructure

To further bolster energy security, the government approved the establishment of two additional commercial-cum-strategic facilities under Phase-II of the SPR program in July 2021.5 million tonnes at Padur in Karnataka. The Minister informed that the contract for commencing construction at Padur has been set for October 1, 2025. Plus, the government is moving towards the commercialization of existing reserves. Under an agreement between the Abu Dhabi National Oil Company (ADNOC) and ISPRL, ADNOC has been permitted to work with a 750,000-tonne cavern in Mangaluru.

Diversification of Global Supply Sources

India has adopted a strategy of extensive diversification of its crude oil sources to reduce over-reliance on any single region or nation. Currently, India's Public Sector Enterprises (PSEs) import crude oil from 41 different countries. Beyond traditional Middle Eastern suppliers like Iraq, Saudi Arabia, UAE, Kuwait, and Qatar, India is now procuring oil from countries including the USA, Nigeria, Angola, Canada, Colombia, Brazil, and Mexico. India's total current storage capacity, which includes the facilities maintained by Oil Marketing Companies (OMCs), is estimated to be sufficient to meet approximately 74 days of national demand. The government aims to expand this capacity further to make the country more resilient to global crises.