INDIA’S STRATEGIC PETROLEUM RESERVES (SPR)

India’s Strategic Petroleum Reserves (SPR) are functioning as the country’s ultimate “insurance policy.”

India’s dedicated strategic reserves are located in three massive underground rock caverns. While the total capacity is 5.33 Million Metric Tonnes (MMT)—roughly 39-40 million barrels—the government has been careful not to “empty the tank” too early.

Total SPR “Days of Cover”: These caverns alone provide roughly 9 to 10 days of total national demand.

The “50-Day” Buffer Strategy

When people talk about India’s oil reserves, they often combine the SPR with commercial inventories held by oil marketing companies (IOCL, BPCL, HPCL).

• • Crude Oil Stocks: Roughly 25 days of supply held in refinery tanks and SPRs.
  • Finished Product Stocks: Another 25 days of petrol, diesel, and aviation fuel held at depots across the country.
  • The Total: India effectively has a 50-day cushion of total petroleum products. This has prevented the widespread “dry outs” seen in neighboring countries during the current crisis.

Critical Weak Spot: Natural Gas (LNG)

Unlike oil, India lacks a formal Strategic Gas Reserve. This has made the Hormuz crisis particularly painful for the power and fertilizer sectors.

• • Current LNG Cover: Stocks are estimated to last only 10–14 days.
  • Emergency Measure: On March 9, 2026, the government issued a Natural Gas Control Order, forcing LNG terminals to keep a 10% “buffer” of all incoming shipments for government use, effectively creating a “floating” strategic reserve.

Phase II Expansion (The Future)

The current crisis has fast-tracked India’s plans to double its storage capacity.

• • New Sites: Development at Chandikhol (Odisha) and a second phase at Padur is being treated as a high-priority national security project.
  • Goal: Once Phase II is complete, India’s SPR capacity will rise to 11.83 MMT, providing approximately 22 days of independent crude cover.