As global energy markets remain shaken by prolonged West Asia tensions and disruptions around the Strait of Hormuz, India has revealed that it currently maintains nearly 60 days of crude oil and petroleum product reserves along with more than 45 days of LPG stocks.
The government says these emergency reserves are helping India avoid fuel shortages and sharp domestic price spikes despite severe volatility in global crude markets.
According to Petroleum Secretary Neeraj Mittal:
- India has maintained 60-day crude and fuel reserves
- LPG reserves exceed 45 days
- Additional fuel procurement has been secured from alternative countries
- Domestic LPG production has increased sharply
Why India Is Worried About Energy Security
India is among the world’s most energy-dependent economies:
- Nearly 88% of crude oil demand is met through imports
- Around one-fifth of global oil trade passes through the Strait of Hormuz
- Any Middle East disruption directly impacts India’s economy
The government has been operating in what officials described as a “crisis-management mode” for over two months to ensure uninterrupted fuel supplies.
Interestingly, despite crude oil prices remaining extremely high globally, India has avoided major petrol and diesel price hikes.
But this stability is proving expensive.
According to government estimates:
- Oil marketing companies are absorbing nearly ₹1,000 crore losses every day
- Under-recoveries may touch almost ₹2 lakh crore in Q1 FY26 alone
What Is ‘Samudra Manthan’?
Alongside short-term fuel management, India is accelerating a much larger long-term energy security strategy called “Samudra Manthan.”
The programme focuses on:
- Deep-sea oil and gas exploration
- Offshore critical mineral discovery
- Expanding domestic energy production
- Reducing dependence on imported crude
Officials say the project is now in its final stages before rollout.
The initiative is expected to become one of India’s biggest offshore exploration drives ever, targeting untapped reserves beneath Indian waters.
India Wants Bigger Strategic Reserves
India currently has strategic petroleum reserves in:
- Visakhapatnam
- Mangaluru
- Padur
But the government now plans to expand reserve capacities further for:
- Crude oil
- Natural gas
- LPG
The long-term goal is reportedly to move closer toward a 90-day strategic reserve target similar to International Energy Agency (IEA) recommendations.
However, officials admit this is financially challenging for a country consuming nearly 5 million barrels of oil per day.
PM Modi’s Fuel Conservation Push
The government has also launched a nationwide fuel conservation appeal.
Prime Minister Narendra Modi recently urged citizens to:
- Use public transport and metros
- Prefer carpooling
- Reduce unnecessary fuel consumption
- Limit non-essential foreign travel
- Promote solar-powered farming systems
The message reflects growing concern that prolonged geopolitical instability could continue pressuring India’s import bill and foreign exchange reserves.
Why This Matters For India
India’s economy is highly sensitive to oil shocks.
Higher crude prices affect:
- Petrol and diesel prices
- Inflation
- Logistics and transport costs
- Airline operations
- Government finances
- Rupee stability
That is why energy security is increasingly becoming a national strategic priority — not just an economic issue.
The bigger takeaway is clear:
India is no longer treating fuel security as a short-term crisis response. Through larger reserves, diversified imports, and projects like Samudra Manthan, the country is preparing for a future where global energy disruptions may become far more frequent.
