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
