Home / Business and Economy / India's Oil Reserves Critically Low: Only 64% Full
India's Oil Reserves Critically Low: Only 64% Full
23 Mar
Summary
- India's strategic oil reserves are at 64% capacity.
- Strategic reserves cover only about 9.5 days of supplies.
- New reserves in Odisha and Karnataka are under development.
India's strategic underground oil reserves, vital for buffering against supply disruptions and price shocks, are currently holding only 64% of their total capacity. Minister of State for Petroleum and Natural Gas Suresh Gopi informed the Rajya Sabha that the available crude stock is around 3.372 million tonnes, which translates to approximately 9.5 days of supplies.
These reserves, with a total capacity of 5.33 million tonnes across Visakhapatnam, Mangaluru, and Padur, are managed by Indian Strategic Petroleum Reserve Ltd (ISPRL). The quantity of crude oil fluctuates based on market conditions and consumption rates, a dynamic situation particularly concerning given India's status as the world's third-largest energy consumer, importing about 88% of its crude oil needs.
To bolster energy security, the government approved the establishment of two additional commercial-cum-strategic petroleum reserve facilities in Chandikhol, Odisha (4 million tonnes), and Padur, Karnataka (2.5 million tonnes) in July 2021. Construction for the Padur facility has been awarded, with work expected to commence on October 1, 2025. This expansion aims to mitigate the risks associated with dependence on a narrow sealane like the Strait of Hormuz, through which a significant portion of India's oil and gas imports pass.
