India's Strategic Petroleum Reserves at 64% Capacity: Implications for Energy Security

Indian Express - Explained · 25 Mar 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

India's strategic petroleum reserves (SPRs) are currently holding only 64% of their total capacity, highlighting vulnerabilities in fuel security amid global supply disruptions caused by the West Asia conflict.

Key points

Strategic Petroleum Reserves (SPRs) in India currently hold 3.37 million tonnes of crude oil, just 64% of their 5.33 million tonnes capacity, as per MoPNG data.

The SPRs, located in Visakhapatnam, Mangaluru, and Padur, provide a buffer for 9.5 days of India's crude oil supply at full capacity, falling short of the IEA's 90-day recommendation.

India's oil import dependency stands at 88%, making SPRs critical for energy security, especially during geopolitical crises like the West Asia conflict disrupting the Strait of Hormuz.

The International Energy Agency (IEA) recommends 90-day reserves; India's total stock (including commercial reserves) covers only 74 days, below this benchmark.

[GS3-Economy] The commercial angle of SPRs allows India to leverage oil market cycles, releasing inventory during price surges and replenishing during downturns, as seen with ADNOC's use of Mangaluru SPR.

Plans to expand SPR capacity by 6.5 million tonnes in Chandikhol (Odisha) and Padur (Karnataka) are pending, reflecting delayed infrastructure development.

The West Asia conflict has disrupted 2.5–2.7 million bpd of India's crude imports (50% of total), underscoring the need for diversified supply chains and enhanced reserves.

[GS2-International Relations] India's associate membership in IEA limits its access to collective emergency reserves, unlike full members like the US and Japan.

Way Forward: Accelerate Phase-II SPR expansions, formalize partnerships with oil-producing nations for commercial storage, and integrate SPR management with renewable energy transition plans to reduce long-term import dependency.

Key terms

International Energy Agency (IEA)

An intergovernmental organization established in 1974 to coordinate collective responses to oil supply emergencies. It mandates 90-day oil reserves for members. India, an associate member since 2017, seeks full membership to access emergency reserves and influence global energy policies.

Strait of Hormuz

A critical maritime chokepoint between Oman and Iran, through which 21 million barrels of oil pass daily. Disruptions here directly impact India, as 40-50% of its oil imports transit this route, making it a focal point for energy security strategies.

Oil Industry Development Board (OIDB)

A statutory body under MoPNG established in 1975 to finance infrastructure in hydrocarbon sectors. It wholly owns ISPRL, reflecting the institutional framework for India's energy security architecture under the Petroleum Act, 1934.

Strategic Petroleum Reserves (SPRs)

Underground storage facilities for crude oil maintained by nations to mitigate supply disruptions. In India, managed by ISPRL (Indian Strategic Petroleum Reserve Limited), they currently cover 9.5 days of consumption. Critical for energy security given India's 88% import dependency and geopolitical risks like West Asia conflicts.