India Can Withstand 74 Days Of Oil Supply Shock, Govt Tells Parliament

India currently has a total capacity for storage of crude oil and petroleum products for 74 days, which can help to tide over disruptions in case of adverse situations such as geopolitical conflicts, the Parliament was informed on Monday.

“The government has established Strategic Petroleum Reserves facilities with a total capacity of 5.33 million metric tonnes (MMT), which can act as a buffer for short-term supply shocks such as geopolitical conflicts. This is meant to provide for about 9.5 days of crude oil requirement. In addition, Oil Marketing Companies (OMCs) in the country have storage facilities for crude oil and petroleum products for 64.5 days. Hence, the current total national capacity for storage of crude oil and petroleum products is 74 days,” Minister of State for Petroleum and Natural Gas Suresh Gopi told the Rajya Sabha in a written reply.

To further augment the petroleum reserves’ capacity, the government, in July 2021, had also approved the establishment of two additional facilities with a total storage capacity of 6.5 MMT at Chandikhol (4 MMT) in Odisha and Padur (2.5 MMT) in Karnataka on Public Private Partnership (PPP) mode. This expansion will increase the oil reserve equivalent to 12 days of imports.

Further, the government has taken multiple steps to mitigate the risk of supply disruption and to maintain an uninterrupted energy supply chain during geopolitical uncertainties. This includes diversifying crude oil import sources, bypassing conflict zones and strengthening diplomatic engagements with major oil-producing countries and international organisations like the International Energy Agency (IEA), the Organisation of the Petroleum Exporting Countries (OPEC), and the International Energy Forum (IEF).

Meanwhile, India’s proven hydrocarbon reserves have been established through sustained exploration efforts across its sedimentary basins. As on April 1, 2025, the country’s proved Estimated Ultimate Recovery (EUR) is 1,948.1 Million Metric Tonnes (MMT) for crude oil and 1,844.3 Billion Cubic Meter (BCM) for natural gas as per the annual estimates under the Petroleum Resources Management System (PRMS). The proven reserves (Balance Recoverable Reserves) are 423.1 MMT for crude oil and 595.4 BCM for natural gas.

The year-wise percentage of import dependence on crude oil ranges from 85 per cent to 88 per cent and on Liquefied Natural Gas (LNG) between 48 per cent to 50 per cent during the last 5 years, the minister added.

(Disclaimer: This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)