Oil Reserve Levels: India's Strategic Storage Status

India’s Strategic Oil Reserves at Two-Thirds Capacity Amid Middle East Supply Risks​

New Delhi, March 23 – India’s strategic petroleum reserves (SPR), designed to provide cover for about 9.5 days of crude oil supplies during disruptions or price shocks, are currently at only two-thirds capacity, the Rajya Sabha was informed on Monday.

India’s Dependence on Oil Imports​

As the world’s third-largest energy consumer, India relies heavily on imports for around 88% of its crude oil needs. To mitigate supply disruptions, India has built underground strategic storage facilities with a total capacity of 5.33 million tonnes across three locations:

• Visakhapatnam, Andhra Pradesh
• Mangaluru, Karnataka
• Padur, Karnataka

These facilities store crude oil that is refined into petrol, diesel, and other fuels.

Current Stock Levels​

Minister of State for Petroleum and Natural Gas Suresh Gopi stated that Indian Strategic Petroleum Reserve Ltd (ISPRL) currently holds 3.372 million tonnes, or 64% of total capacity. He emphasized that the reserves are dynamic, fluctuating with market conditions and consumption levels.

ISPRL, a special purpose vehicle, manages the SPR facilities to act as a buffer for short-term supply shocks.

Rising Focus Amid Middle East Tensions​

The stockpile has gained attention following disruptions in the Middle East, which affected India’s supply of crude oil, natural gas, and LPG. In the first 11 months of the current fiscal year, India spent USD 110 billion importing about 226 million tonnes of crude, half of which came from Gulf countries like Saudi Arabia, Iraq, and the UAE via the Strait of Hormuz.

• Natural gas imports: USD 12.4 billion (April 2025 – Feb 2026)
• LPG imports: 60% sourced from overseas, with 85–95% passing through the Strait of Hormuz

While crude oil disruptions have been partially offset via alternative suppliers such as Russia, West Africa, the US, and Latin America, gas and LPG supplies to industrial and commercial users have been curtailed.

Expansion and Commercialization of SPR​

To further strengthen energy security, the government approved in July 2021 the establishment of two additional commercial-cum-strategic petroleum reserve facilities:

• Chandikhol, Odisha – 4 million tonnes
• Padur, Karnataka – 2.5 million tonnes (construction awarded October 1, 2025)

Phase-I SPRs have also been commercialized through an agreement with Abu Dhabi National Oil Company (ADNOC), allowing ADNOC to use Cavern-A at Mangaluru with a 750,000-tonne capacity.

The total national storage capacity for crude oil and petroleum products now stands at 74 days, including oil marketing companies (OMCs).

Diversification of Crude Supply​

To reduce dependence on a single region, public sector enterprises (PSEs) source crude oil from 41 countries, including:

• New suppliers: USA, Nigeria, Angola, Canada, Colombia, Brazil, Mexico
• Traditional Middle East suppliers: Iraq, Saudi Arabia, UAE, Kuwait, Qatar

This diversification strategy ensures India’s energy security even amid geopolitical uncertainties.