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India's 74-Day Oil Buffer Shields Against Global Supply Shocks

India's total national capacity for storing crude oil and petroleum products stands at 74 days, combining strategic reserves and Oil Marketing Companies' facilities. The government is expanding this buffer by approving two new facilities in Odisha and Karnataka, which will add capacity equivalent to 12 days of imports. To further mitigate supply risks, India is diversifying import sources and strengthening diplomatic ties with major oil-producing nations and international energy bodies. Despite these measures, the country's import dependence for crude oil remains high, ranging from 85% to 88% over the past five years.

Key Points: India's 74-Day Oil & Petroleum Reserve Capacity

  • 74-day national oil buffer
  • Strategic reserves for 9.5 days
  • OMC storage for 64.5 days
  • New facilities to add 12-day capacity
  • 85-88% crude import dependence
2 min read

India has 74-day reserves of oil, petroleum products: Minister

India has 74 days of strategic oil and petroleum reserves to manage supply disruptions, with plans to expand capacity further.

"The current total national capacity for storage of crude oil and petroleum products is 74 days. - Suresh Gopi"

New Delhi, March 9

India currently has a total capacity for storage of crude oil and petroleum products for 74 days, which can help to tide over disruptions in case of adverse situations such as geopolitical conflicts, the Parliament was informed on Monday.

"The government has established Strategic Petroleum Reserves facilities with a total capacity of 5.33 million metric tonnes (MMT), which can act as a buffer for short-term supply shocks such as geopolitical conflicts. This is meant to provide for about 9.5 days of crude oil requirement. In addition, Oil Marketing Companies (OMCs) in the country have storage facilities for crude oil and petroleum products for 64.5 days. Hence, the current total national capacity for storage of crude oil and petroleum products is 74 days," Minister of State for Petroleum and Natural Gas Suresh Gopi told the Rajya Sabha in a written reply.

To further augment the petroleum reserves' capacity, the government, in July 2021, had also approved the establishment of two additional facilities with a total storage capacity of 6.5 MMT at Chandikhol (4 MMT) in Odisha and Padur (2.5 MMT) in Karnataka on Public Private Partnership (PPP) mode. This expansion will increase the oil reserve equivalent to 12 days of imports.

Further, the government has taken multiple steps to mitigate the risk of supply disruption and to maintain an uninterrupted energy supply chain during geopolitical uncertainties. This includes diversifying crude oil import sources, bypassing conflict zones and strengthening diplomatic engagements with major oil-producing countries and international organisations like the International Energy Agency (IEA), the Organisation of the Petroleum Exporting Countries (OPEC), and the International Energy Forum (IEF).

Meanwhile, India's proven hydrocarbon reserves have been established through sustained exploration efforts across its sedimentary basins. As on April 1, 2025, the country's proved Estimated Ultimate Recovery (EUR) is 1,948.1 Million Metric Tonnes (MMT) for crude oil and 1,844.3 Billion Cubic Meter (BCM) for natural gas as per the annual estimates under the Petroleum Resources Management System (PRMS). The proven reserves (Balance Recoverable Reserves) are 423.1 MMT for crude oil and 595.4 BCM for natural gas.

The year-wise percentage of import dependence on crude oil ranges from 85 per cent to 88 per cent and on Liquefied Natural Gas (LNG) between 48 per cent to 50 per cent during the last 5 years, the minister added.

- IANS

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Reader Comments

P
Priyanka N
Good to know we have a plan, but the import dependence numbers are still worrying - 85-88% for crude oil! We need to accelerate our own exploration and push much harder on renewables and electric vehicles. Strategic reserves are a cushion, not a solution.
A
Aman W
Diversifying import sources and strengthening diplomacy with OPEC countries is the key. We can't control global conflicts, but we can make sure our supply lines are robust. Hope the diplomatic engagements translate to stable prices for the common man.
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Sarah B
As someone who follows global energy markets, India's move to build strategic reserves and engage with IEA is a mature step. The 12-day addition from new facilities is significant. The challenge will be maintaining and rotating this stockpile efficiently.
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Vikram M
The numbers sound good on paper. But what is the plan for distribution if there is an actual crisis? Will there be hoarding and black marketing? We need transparent protocols for the states as well. Jai Hind.
K
Kriti O
This is a welcome update. However, I respectfully feel the focus is too much on the supply side. We should be aggressively investing in public transport and green hydrogen to reduce this massive demand itself. That's the long-term vision we need.

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