Brief Context
Context As of March 2026, nearly one-third (about 36%) of India’s Strategic Petroleum Reserves (SPRs) remain unfilled, raising concerns amid rising geopolitical tensions in West Asia. What are Strategic Petroleum Reserves (SPRs)? SPRs are emergency stockpiles of crude oil maintained by governments to tackle supply disruptions and price shocks.
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Syllabus: GS3/ Energy Security
Context
- As of March 2026, nearly one-third (about 36%) of India’s Strategic Petroleum Reserves (SPRs) remain unfilled, raising concerns amid rising geopolitical tensions in West Asia.
What are Strategic Petroleum Reserves (SPRs)?
- SPRs are emergency stockpiles of crude oil maintained by governments to tackle supply disruptions and price shocks.
- The idea emerged after the 1973 Oil Crisis, when oil supply disruptions exposed the vulnerability of import-dependent economies.
- In India, SPRs are managed by Indian Strategic Petroleum Reserves Limited, a special purpose vehicle under the Oil Industry Development Board.
- Existing SPR Facilities: India has established SPRs with a total capacity of 5.33 Million Metric Tonnes (MMT) at
- Visakhapatnam (1.33 MMT)
- Mangaluru (1.5 MMT)
- Padur (2.5 MMT)
- In 2021, two additional commercial-cum-strategic petroleum reserve facilities with total storage capacity of 6.5 MMT were announced at;
- Chandikhol (4 MMT) in Odisha and
- Padur (2.5 MMT) in Karnataka.
Current Status of SPRs
- India currently holds around 3.372 million metric tonnes of crude oil, which is roughly 64% of its total storage capacity of 5.33 million metric tonnes.
- This reduces effective reserve coverage to around 5 days, significantly lower than the ~9.5 days available at full capacity, weakening India’s emergency preparedness.
- The critical maritime choke point, Strait of Hormuz, through which 40–50% of India’s crude imports pass, remains highly vulnerable to conflict-induced disruptions.
Why Does It Matters for Fuel Security?
- Vulnerability Due to Import Dependence: India imports over 88% of its crude oil needs. Lower SPR levels reduce the country’s ability to withstand prolonged supply disruptions.
- Limited Buffer Against Supply Shocks: SPRs are meant to provide short-term emergency cover. With only ~64% capacity filled, India’s buffer is weaker during crises like wars or sanctions.
- Below Global Standards: The International Energy Agency recommends 90 days of oil reserves. India currently has around 74 days including commercial stocks.
- Strategic and Geopolitical Leverage: Countries like the US, China, and Japan use SPRs as strategic tools. Limited reserves reduce India’s influence in global energy markets.
Way Ahead
- Fill Existing Capacity: Prioritize filling SPRs, especially during periods of low global oil prices.
- Enhance Storage Capacity: Move towards meeting the 90-day reserve benchmark.
- Promote Energy Transition: Increase share of renewables, biofuels, and alternative energy sources.
- Strengthen Strategic Autonomy: Use SPRs as a tool for both energy security and market intervention.
Source: IE