India's Strategic Oil Reserves: A Buffer Against Supply Disruptions

As concerns rise over potential crude oil supply disruptions linked to the Middle East crisis, India's strategic reserves can sustain the country for about 9.5 days. The government emphasizes the importance of these reserves for short-term relief during supply shocks. Currently, India holds approximately 3.37 million tonnes of crude oil, which is 64% of its total capacity. With a heavy reliance on imports, the nation is diversifying its sources and expanding storage facilities to enhance energy security. This article delves into India's efforts to safeguard against geopolitical risks and ensure a stable energy supply.

By Narendra Chaudhary Mar 24, 2026, 17:01 IST

India's Oil Reserves and Supply Security

With growing worries about potential disruptions in crude oil supply due to the ongoing crisis in the Middle East, India's strategic oil reserves can sustain the nation for approximately 9.5 days, as stated by the government. Suresh Gopi, the Minister of State for Petroleum and Natural Gas, informed Parliament that these reserves are intended to offer immediate relief during times of supply shocks or significant price fluctuations.

According to data from the Indian Strategic Petroleum Reserve Ltd, India currently possesses around 3.37 million tonnes of crude oil, which is about 64% of its total storage capacity of 5.33 million tonnes. As the third-largest energy consumer globally, India relies heavily on imports, with nearly 88% of its crude oil sourced from abroad. A large portion of these imports passes through the vital Strait of Hormuz, making India particularly susceptible to geopolitical tensions.

To mitigate these risks, India has established underground storage facilities in Visakhapatnam, Mangaluru, and Padur, serving as emergency reserves. However, the minister emphasized that the levels of reserves are subject to change based on consumption trends and stock availability.

In addition to strategic reserves, India's overall crude and petroleum storage, which includes stocks held by oil marketing companies, can support consumption for about 74 days, providing a more extensive safety net. The government is also working to diversify its supply sources, increasing imports from 41 countries, including the United States, Nigeria, Angola, Canada, Brazil, and Mexico, to lessen dependence on the Gulf region.

Looking forward, India is developing an additional storage capacity of 6.5 million tonnes at Chandikhol in Odisha and Padur in Karnataka, aimed at enhancing long-term energy security. This update is particularly relevant as the ongoing conflict involving Iran disrupts global oil and gas flows, heightening concerns for energy-importing nations like India.