INDIA’S STRATEGIC PETROLEUM RESERVES

NEWS: India’s Strategic Petroleum Reserves (SPRs) provide an emergency buffer against supply disruptions, with a total capacity of 5.33 million metric tonnes (MMT)

Context

• India has 5.33 million tonnes (MT) of Strategic Petroleum Reserve (SPR) capacity
• Currently, 36% is empty
• Issue highlighted amid global oil supply disruptions & energy security concerns

Strategic Petroleum Reserves (SPR)

• SPR = Emergency stockpile of crude oil
• Stored in: Underground rock caverns
• Purpose: To ensure energy security during crises
• Origin: Concept started in 1973 after the First Oil Crisis

India’s SPR Status

Capacity & Storage

• Total capacity: 5.33 million tonnes
• Current stock: ~3.37 million tonnes (~64%)
• 36% capacity is empty

Locations of SPR

Stored across 3 major sites:

• Visakhapatnam (Andhra Pradesh) – 1.33 MT
• Mangaluru (Karnataka) – 1.5 MT
• Padur (Karnataka) – 2.5 MT
• Full SPR capacity can cover: ~9.5 days of India’s crude oil demand

SPR is Important

Energy Security

• India imports over 88% of crude oil
• Protects against: Wars, Supply disruptions, Price shocks

Strategic Buffer

• Used during: Geopolitical conflicts (e.g., West Asia crisis), Natural disasters

Global Practice

• Countries like: USA, China, Japan maintain large reserves
• IEA Norm: Countries should maintain:
• 90 days of oil consumption

Key Issues / Challenges

Underutilization

• 36% capacity is empty
• Weakens emergency preparedness

Low Coverage

• Current reserves = ~9.5 days
• Much below: IEA standard (90 days)

Import Dependency

• India depends on imports for: ~88% of crude oil

Global Volatility

• Oil prices fluctuate due to: Wars, OPEC decisions, Supply chain issues

Way Forward

• Fill Existing Capacity
• Urgent need to: Fill 36% empty reserves
• Expand Storage: Complete Phase-II projects
• Diversify Imports: Reduce dependence onàWest Asia
• Align with IEA Standardsà Increase reserves toward: 90-day benchmark