Overview of India’s Strategic Petroleum Reserves (SPRs)

India’s Strategic Petroleum Reserves (SPRs) are emergency crude oil stockpiles designed to mitigate supply disruptions and price shocks. Established post-1973 Oil Crisis, India’s SPR infrastructure is managed by Indian Strategic Petroleum Reserves Limited (ISPRL), a special purpose vehicle under the Oil Industry Development Board (OIDB) Act, 1975. The country currently maintains SPR capacity of 5.33 million metric tonnes (MMT) across Visakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), and Padur (2.5 MMT).

In 2021, India announced two additional commercial-cum-strategic reserve facilities with a combined capacity of 6.5 MMT at Chandikhol (4 MMT) and Padur (2.5 MMT), aiming to enhance energy security amid rising global uncertainties (Ministry of Petroleum & Natural Gas, 2021).

Legal and Constitutional Framework Governing SPRs

The SPR framework operates under the Oil Industry Development Board Act, 1975, which empowers the government to establish and manage strategic reserves through ISPRL. While no direct constitutional provision governs SPRs, energy security aligns with Article 21 (Right to Life) by ensuring uninterrupted energy supply and falls under the Union List (Article 246) granting the Centre legislative competence over energy resources.

The Ministry of Petroleum & Natural Gas (MoPNG) formulates policy and oversees SPR management, while ISPRL executes operational functions. The International Energy Agency (IEA) provides global guidelines and cooperation frameworks but India is not yet a member, limiting access to coordinated emergency response mechanisms.

Current Status and Economic Implications of India’s SPRs

As of March 2026, India’s SPRs are filled to approximately 64% capacity, holding around 3.372 MMT of crude oil. This translates to roughly 9.5 days of crude consumption at full capacity, but current effective coverage is about 5 days due to underfilling (ISPRL Annual Report, 2025; PPAC 2025-26).

India imports over 80% of its crude oil, costing upwards of USD 120 billion annually, making it highly vulnerable to global price volatility. The underutilization of SPRs amid escalating West Asian tensions—where 40-50% of crude transits through the Strait of Hormuz—exposes India to supply shocks and inflationary pressures (IEA Report, 2026).

• Underfilled SPRs reduce India’s buffer against sudden supply disruptions.
• Price volatility in 2025 increased by 25% due to geopolitical tensions, impacting fiscal stability.
• Inflationary spillovers from crude price shocks affect both industrial and consumer sectors.

Institutional Roles and Coordination

ISPRL manages the operational aspects of SPRs, including procurement, storage, and release protocols. The OIDB acts as the governing body under MoPNG, which sets policy and strategic direction. Coordination with international bodies like the IEA remains limited due to India’s non-membership, constraining access to coordinated emergency oil stock releases.

Effective SPR management requires synergy between these institutions and integration with commercial oil stockholders, which currently lacks a mandated minimum fill-level policy, causing underutilization and operational inefficiencies.

Comparative Analysis: India vs Japan’s SPR Strategy

Critical Gaps in India’s SPR Strategy

• Absence of a legally mandated minimum fill-level policy results in underutilization and weak emergency preparedness.
• Heavy dependence on West Asian crude imports without diversified sourcing exposes India to regional geopolitical risks.
• Lack of multi-regional procurement agreements limits flexibility in crisis response.
• Non-membership in IEA restricts access to international coordinated stock release mechanisms.
• Commercial-cum-strategic reserves lack clear operational protocols for emergency deployment.

Significance and Way Forward

• Accelerate filling of existing SPRs to at least 90% capacity to enhance emergency coverage closer to IEA standards.
• Implement a statutory minimum fill-level policy to ensure sustained reserve levels.
• Diversify crude oil procurement beyond West Asia through strategic partnerships in Africa, Latin America, and Russia to mitigate supply shocks.
• Pursue IEA membership or enhanced cooperation to access coordinated global emergency response frameworks.
• Develop clear operational guidelines for commercial-cum-strategic reserves to integrate them effectively into the national energy security framework.