In a significant move aimed at enhancing the country’s energy security, the Government of India has announced plans to expand its Strategic Petroleum Reserves (SPR) to cover up to 90 days of crude oil supply. This initiative comes amid rising global geopolitical tensions, fluctuating oil prices, and concerns about supply chain disruptions that could impact India’s energy needs.
The Indian Strategic Petroleum Reserves Ltd (ISPRL), under the Ministry of Petroleum and Natural Gas, currently maintains a reserve capacity of approximately 5.33 million tonnes (equivalent to around 39 million barrels), sufficient to meet about 9.5 days of the nation’s crude oil requirement. The proposed expansion aims to significantly increase this capacity in phases, with the ultimate goal of achieving a buffer stock that can sustain the country for 90 days in case of emergency disruptions.
According to officials, the government is exploring new storage facilities in Rajasthan, Odisha, and other strategic locations, while also seeking participation from private players and foreign investors. The expansion plan will include a mix of underground rock caverns and above-ground tank farms.
The need for robust oil reserves has become more urgent as the world grapples with energy uncertainties triggered by conflicts such as the Russia-Ukraine war and instability in the Middle East. India, the third-largest oil importer globally, is heavily dependent on external sources for over 85% of its crude oil needs. Experts believe that a 90-day oil buffer would align India with the International Energy Agency (IEA) guidelines, improving the country’s resilience during global supply shocks.
Oil Minister Hardeep Singh Puri emphasized the importance of preparedness, stating, “Energy security is not a choice but a necessity. With this expansion, India moves closer to shielding its economy and citizens from external energy crises.”
The strategic reserves will not only serve as an emergency buffer but also support market stabilization in times of volatile pricing. By buying crude oil during periods of low global prices and utilizing reserves during price hikes, India could better manage its import bill and inflation pressures.
Additionally, the government is considering integrating renewable energy storage with future SPR facilities to promote a more sustainable and diversified energy strategy. Discussions with countries like the UAE and Saudi Arabia are also ongoing regarding crude storage agreements and commercial stockpiling collaborations.
