India's Strategic Oil Reserve Stance Amid Global Price Surge

India has opted out of the IEA initiative to release strategic oil reserves to combat soaring oil prices, focusing instead on its 'India first' policy. The country, being an associate IEA member and having sufficient reserves, is set to prioritize national interests over international directives.

India has decided against participating in the International Energy Agency's initiative to release strategic oil reserves designed to curb the escalating oil prices, according to top government officials.

As the world's third-largest oil importer and consumer, India holds 5.33 million tonnes of underground strategic oil reserves—but these reserves are only 80% full. Meanwhile, oil prices have surged close to $120 per barrel due to the conflict in West Asia, causing G7 nations to consider reserve releases. However, Indian authorities stress that the current crisis is not of their making and emphasize an 'India first' approach.

Despite being an associate member of the IEA, India is not obligated to follow the organization's directives. The IEA's executive director, Fatih Birol, is set to discuss the issue with Indian officials. In 2021, India joined a US-led initiative to release 5 million barrels from its strategic petroleum reserves to aid in stabilizing global prices.

(With inputs from agencies.)