{"id":94535,"date":"2026-03-24T09:47:08","date_gmt":"2026-03-24T04:17:08","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=94535"},"modified":"2026-03-24T11:18:58","modified_gmt":"2026-03-24T05:48:58","slug":"indias-strategic-petroleum-reserves-hidden-vulnerability-in-energy-security","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-strategic-petroleum-reserves-hidden-vulnerability-in-energy-security\/","title":{"rendered":"India\u2019s Strategic Petroleum Reserves: Hidden Vulnerability in Energy Security"},"content":{"rendered":"<h2><b>India\u2019s Strategic Petroleum Reserves Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India&#8217;s Strategic Petroleum Reserves (SPRs), with a total storage capacity of 5.33 million tonnes, are currently holding 3.37 million tonnes of crude oil \u2014 just 64% of total capacity, as revealed by Minister of State for Petroleum in a written reply to the Rajya Sabha.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The SPRs are spread across three underground cavern facilities in Andhra Pradesh and Karnataka, managed by the Indian Strategic Petroleum Reserve Limited (ISPRL). At full capacity, they can cover approximately <\/span><b>9.5 days of India&#8217;s crude oil requirements<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With one-third of storage capacity lying vacant, India&#8217;s buffer against short-term supply shocks is not at its strongest at a time when it is needed most. The government noted that the reserve figure is <\/span><b>dynamic<\/b><span style=\"font-weight: 400;\">, not static \u2014 it fluctuates depending on <\/span><b>market conditions, incoming stocks, and actual consumption<\/b><span style=\"font-weight: 400;\">. So the 64% figure represents a snapshot, not a fixed position.<\/span><\/li>\n<\/ul>\n<h2><b>About Strategic Petroleum Reserves (SPRs)<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Strategic Petroleum Reserves are <\/span><b>dedicated stockpiles of crude oil<\/b><span style=\"font-weight: 400;\"> maintained by countries as a buffer against sudden supply disruptions and price shocks.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They are distinct from the routine operational reserves held by oil companies.<\/span><\/li>\n<\/ul>\n<h3><b>Historical Background<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The concept of SPRs was first proposed after the Oil Crisis of 1973, when Arab nations imposed an oil embargo on Western countries.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Since then, SPRs have been tapped during major global emergencies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Countries like the <\/span><b>US, China, and Japan<\/b><span style=\"font-weight: 400;\"> maintain massive SPRs, reflecting the strategic importance of energy stockpiling for large oil-importing economies.<\/span><\/li>\n<\/ul>\n<h3><b>India&#8217;s SPR Infrastructure: Current Status<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In India, SPRs are managed by ISPRL (Indian Strategic Petroleum Reserve Limited) \u2014 a special purpose vehicle and a wholly-owned subsidiary of the Oil Industry Development Board (OIDB).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India currently has <\/span><b>three<\/b><span style=\"font-weight: 400;\"> underground cavern facilities:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Visakhapatnam (Andhra Pradesh) \u2013 1.33 million tonnes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mangaluru (Karnataka) -1.50 million tonnes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Padur (Karnataka) &#8211; 2.50 million tonnes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Total &#8211; 5.33 million tonnes<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At full capacity, these reserves cover approximately <\/span><b>9.5 days<\/b><span style=\"font-weight: 400;\"> of India&#8217;s crude oil needs.<\/span><\/li>\n<\/ul>\n<h3><b>Planned Expansion: Future SPR Sites<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In July 2021, the government approved two additional commercial-cum-strategic petroleum reserves with a combined capacity of 6.5 million tonnes:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Chandikhol, Odisha \u2014 4 million tonnes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Padur, Karnataka (expansion) \u2014 2.5 million tonnes<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Further proposals exist for reserves at Bikaner (Rajasthan) and Rajkot (Gujarat), which would add another 6 million tonnes to India&#8217;s total SPR capacity.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, decisions on these are yet to be taken.<\/span><\/li>\n<\/ul>\n<h3><b>Key Gaps and Concerns<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Current reserves cover only ~9.5 days of crude needs \u2014 <\/span><b>far below the 90-day benchmark<\/b><span style=\"font-weight: 400;\"> recommended for IEA members.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reserves are presently at only 64% capacity (3.37 million tonnes out of 5.33 million tonnes).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Planned expansion projects remain incomplete or undecided, leaving India exposed during prolonged supply disruptions like the current West Asia conflict.<\/span><\/li>\n<\/ul>\n<h2><b>India&#8217;s Oil Stockpiles: Where We Stand and Why It Matters<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India is the world&#8217;s third-largest consumer of crude oil.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Over 88% of its crude oil requirement is met through imports.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This high import dependency makes India acutely vulnerable to global supply disruptions.<\/span><\/li>\n<\/ul>\n<h3><b>The IEA Benchmark: How Does India Compare<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/iea-upsc\/\" target=\"_blank\">IEA (International Energy Agency)<\/a><\/strong><span style=\"font-weight: 400;\"> recommends that countries maintain oil stocks equivalent to at least 90 days of net oil imports.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This includes both strategic reserves and commercial inventories held by refiners.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India is an Associate Member of the IEA (not a full member), so it is not legally obligated to meet this benchmark.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India&#8217;s current total national storage capacity \u2014 including commercial stocks with refiners \u2014 stands at 74 days, still short of the 90-day IEA standard.<\/span><\/li>\n<\/ul>\n<h3><b>Why India Urgently Needs to Expand Its SPRs<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ongoing West Asia conflict has effectively closed the Strait of Hormuz, a critical maritime chokepoint.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Experts argue that expanding dedicated strategic reserves is long overdue, given:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India&#8217;s massive and growing consumption levels.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Its over 88% import dependency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The risk of extended supply disruptions from geopolitical conflicts like the current West Asia war.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The current SPR covers only ~9.5 days of crude needs \u2014 a dangerously thin buffer.<\/span><\/li>\n<\/ul>\n<h3><b>The Commercial Case for Expanding SPRs<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Beyond energy security, there is a strong commercial rationale for building more storage capacity:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Market leverage<\/b><span style=\"font-weight: 400;\"> \u2014 Even limited additional storage would allow ISPRL to release inventory when prices surge and recharge reserves when prices are low, making it a serious player in international oil markets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Leasing to foreign refiners<\/b><span style=\"font-weight: 400;\"> \u2014 Storage can be leased to West Asian refiners, who benefit from reduced freight costs when supplying to Southeast Asian markets.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>The ADNOC Example<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In July 2021, the government approved the commercialisation of Phase-I SPRs.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under this, an agreement was signed between ADNOC (Abu Dhabi National Oil Company, UAE) and ISPRL.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It allows ADNOC to use 7,50,000 tonnes of capacity at the Mangaluru SPR \u2014 a model that can be replicated to generate revenue while keeping reserves available for emergencies.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/india-strategic-petroleum-reserve-capacity-west-asia-10597131\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s strategic petroleum reserves reveal vulnerability as storage remains underutilised, raising concerns over energy security amid global supply disruptions and oil dependency.<\/p>\n","protected":false},"author":18,"featured_media":94548,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[6320,60,22,59],"class_list":{"0":"post-94535","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-indias-strategic-petroleum-reserves","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=94535"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94535\/revisions"}],"predecessor-version":[{"id":94555,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94535\/revisions\/94555"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/94548"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=94535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=94535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=94535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}