India's Strategic Oil Reserves About Two-Thirds Full: Minister

Why It Matters

With imports accounting for the vast majority of its energy mix, India’s under‑filled reserves expose the economy to price spikes and supply disruptions, making capacity expansion a strategic priority.

Key Takeaways

• Strategic reserves at 64% capacity, covering 9.5 days supply.
• India imports 88% of crude, spending $110 bn FY.
• New facilities add 6.5 mn tonnes capacity by 2025.
• Diversified imports from 41 countries reduce regional risk.
• Total storage equals 74 days of national demand.

Pulse Analysis

India’s strategic petroleum reserve programme, launched to cushion the economy from sudden oil market shocks, now sits at roughly 64 percent of its designed capacity. The three underground caverns – located in Visakhapatnam, Mangaluru and Padur – can collectively hold 5.33 million tonnes of crude, enough for just under ten days of consumption. While the reserves provide a modest buffer, the current fill level underscores the need for rapid scaling, especially as global supply chains remain volatile after the Middle‑East conflict.

The country’s reliance on imports is stark: about 88 percent of its crude oil and a similar share of natural gas and LPG flow through the geopolitically sensitive Strait of Hormuz. In the current fiscal year, India spent roughly $110 billion on crude imports and $12.4 billion on natural gas, highlighting the fiscal weight of energy dependence. To mitigate this exposure, Indian public‑sector oil companies have broadened their sourcing basket to 41 nations, adding suppliers from the United States, Brazil and West Africa alongside traditional Middle‑Eastern partners. This diversification helps blunt the impact of regional supply cuts but does not replace the strategic value of a robust domestic reserve.

Looking ahead, the government has approved two additional commercial‑cum‑strategic facilities that will add 6.5 million tonnes of storage capacity, slated for completion by late 2025. The commercialisation of Phase‑I SPRs, including a partnership with ADNOC for cavern use, signals a shift toward leveraging reserve infrastructure for market operations while maintaining a security buffer. As India’s total storage – combining SPRs and oil marketing company tanks – now covers about 74 days of demand, the expanded capacity will push this figure higher, strengthening energy security and providing policymakers with greater flexibility to manage price volatility and geopolitical risk.