India currently has 74 days of crude oil and petroleum product reserves, which can help manage supply disruptions during geopolitical crises, the government informed Parliament. According to Minister of State for Petroleum and Natural Gas Suresh Gopi, the country's Strategic Petroleum Reserves (SPR) have a capacity of 5.33 million metric tonnes (MMT), sufficient for about 9.5 days of crude oil demand. In addition, Oil Marketing Companies (OMCs) maintain stocks that cover 64.5 days, bringing the total reserve capacity to 74 days.
To strengthen energy security, the government has approved two new strategic reserve facilities at Chandikhol and Padur, adding 6.5 MMT capacity, which will increase reserves equivalent to 12 days of imports. The government is also diversifying oil import sources and strengthening engagement with global organisations such as the International Energy Agency, Organization of the Petroleum Exporting Countries, and International Energy Forum to secure supply.
Meanwhile, Finance Minister Nirmala Sitharaman said the recent rise in global crude oil prices following the 2026 Iran–Israel–US escalation is unlikely to significantly impact inflation in India for now. The price of India's crude basket rose from $69.01 per barrel to $80.16 between late February and March 2, 2026. However, with inflation currently near the lower end of the Reserve Bank of India's tolerance band, the immediate effect is expected to be limited.
India's import dependence remains high, with 85–88% of crude oil and 48–50% of LNG being imported in the past five years.
(With inputs from IANS)
