India's Strategic Stockpile: A Safety Net at Two-Thirds Capacity

India's strategic oil reserves are at two-thirds of their capacity, intended to cover 9.5 days of supply disruptions. The reserves, managed by ISPRL, provide a buffer against supply shocks, especially relevant with disruptions from the Middle East. The government plans additional facilities to enhance capacity.

India's strategic oil reserves, intended to provide a safety net for oil supply disruptions, are currently filled to only two-thirds of their planned capacity, Minister of State for Petroleum and Natural Gas Suresh Gopi informed Rajya Sabha. These reserves can supply the country for approximately 9.5 days during supply interruptions or price hikes.

The reserves, which total 5.33 million tonnes across locations in Andhra Pradesh and Karnataka, are essential as India imports 88% of its crude oil needs. Managed by Indian Strategic Petroleum Reserve Ltd (ISPRL), these facilities are critical for maintaining stability in times of international conflict, especially given India's heavy reliance on imports from the Gulf.

Amid the ongoing disruptions from the Middle East, the Indian government is expanding its reserve capacity. Plans for additional facilities in Odisha and Karnataka aim to increase the buffer. Meanwhile, India continues diversifying its import sources, seeking new partners alongside traditional ones from the Gulf to ensure consistent supply.

(With inputs from agencies.)