India’s strategic oil reserve: How much crude does the country actually have?

India is moving to expand its strategic petroleum reserves as geopolitical tensions and disruptions to global oil supply routes highlight the risks faced by one of the world’s largest crude oil importers.

The country currently has 5.33 million metric tonnes (MT) of strategic crude oil storage capacity, spread across underground caverns in Visakhapatnam in Andhra Pradesh and Mangaluru and Padur in Karnataka. The capacity is equivalent to roughly 9.5 days of India’s crude oil requirement, based on the government’s assessment.

However, the strategic reserve represents only one part of India’s overall oil stockpile. When crude held by state-owned oil marketing companies and other storage facilities is included, the country maintains a much larger buffer.

This distinction is important as India looks to expand storage capacity in response to risks ranging from geopolitical conflicts and sanctions to shipping disruptions and sudden spikes in global oil prices.

How much strategic oil reserve does India have?

India’s existing Strategic Petroleum Reserve (SPR) programme, developed under Phase-I, has a total capacity of 5.33 MT.

These reserves are located at Visakhapatnam in Andhra Pradesh with 1.33 MT capacity, Mangaluru in Karnataka with 1.5 MT, and Padur in Karnataka with 2.5 MT. The facilities are operated by the government-owned Indian Strategic Petroleum Reserves Ltd (ISPRL).

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The 5.33 MT capacity is sufficient to cover about 9.5 days of India’s crude oil requirement. However, the government has clarified that this figure does not represent the country’s total oil availability.

According to information placed before Parliament, oil marketing companies maintain additional commercial stocks, while crude and petroleum products are also stored in refinery tanks and other parts of the supply chain. As a result, the 9.5-day figure refers only to underground strategic reserves and not the broader petroleum system.

India’s broader 74-day energy buffer

India’s energy security is strengthened by commercial inventories held by state-run oil companies in addition to strategic reserves.

Petroleum ministry data shows that strategic reserves account for about 9.5 days of net imports, while commercial stocks held by oil companies provide coverage of roughly 64.5 days. Together, this brings India’s total storage capacity to around 74 days of net crude import requirements.

This is still below the International Energy Agency benchmark, which requires member countries to maintain emergency oil stocks equivalent to at least 90 days of net imports. India became a full member of the IEA in 2023, making this benchmark increasingly relevant for its long-term energy planning.

Why is India building more strategic reserves?

India imports more than 85 per cent of its crude oil requirements, making it highly vulnerable to disruptions in global supply chains.

Any prolonged interruption in supplies from major producing regions or along key shipping routes can affect fuel availability, inflation, trade balance and overall economic growth.

This vulnerability was particularly evident during disruptions around the Strait of Hormuz, one of the world’s most critical oil transit chokepoints. Any instability in this region can sharply increase shipping costs and crude prices, directly impacting import-dependent economies like India.

Strategic reserves therefore act as a critical buffer, allowing the country to manage short-term supply shocks without immediate disruption to domestic fuel availability.

India–UAE energy cooperation

India’s energy security strategy has also been strengthened through international partnerships, particularly with the United Arab Emirates.

During high-level engagements between the two countries, agreements were reached to deepen cooperation in energy storage and supply chain resilience. A key development was Abu Dhabi National Oil Company’s announcement on May 15 that it plans to increase its crude holdings in India’s strategic petroleum reserves to up to 30 million barrels.

ADNOC currently has about 5.86 million barrels of storage capacity at the Mangaluru SPR facility. The proposed expansion is expected to utilise existing infrastructure at Mangaluru and explore new opportunities at Visakhapatnam and Chandikhol in Odisha.

The cooperation is aimed at strengthening energy security and improving resilience in UAE–India supply chains, particularly in the context of global shipping disruptions. Both countries have also agreed to explore crude storage opportunities at the UAE’s Fujairah oil hub, which could be integrated into India’s broader strategic storage framework.

In addition, India and the UAE have agreed to collaborate on developing LPG and LNG storage facilities in India, further expanding the scope of their energy partnership.

India’s Phase-II strategic petroleum reserves

The government approved Phase-II of the strategic petroleum reserve programme in July 2021, under which an additional 6.5 MT of storage capacity is planned.

This expansion includes a 4 MT facility at Chandikhol in Odisha and a 2.5 MT facility at Padur in Karnataka. If completed, India’s total strategic storage capacity would rise from 5.33 MT to about 11.83 MT, excluding additional projects under consideration.

At Chandikhol, around 400 acres of land have been acquired and the request for proposal is under review. For Padur-II, ISPRL signed a concessionaire agreement with the selected bidder in October 2025, and financial closure is currently underway.

However, the projects have faced delays. A parliamentary standing committee on petroleum and natural gas has noted that allocations for Phase-II have been reduced at the revised-estimate stage due to delays in bidding, land acquisition and other procedural steps. The committee has urged the government to ensure timely execution and full utilisation of funds allocated for strategic infrastructure.

New reserves planned at Mangaluru, Bikaner and Bina

Beyond Phase-II, India is planning additional strategic storage expansion.

A 1.75 MT facility is being developed at Mangaluru adjacent to the existing reserve. The project is being implemented by Oil and Natural Gas Corporation, with ISPRL having completed feasibility studies and acquired 155 acres of land. Work is also underway to obtain Special Economic Zone notification for part of the project area.

ONGC has indicated that half of the new capacity may be reserved for strategic use, while the remaining portion could be used commercially. The expansion is significant as it strengthens an already established energy hub that includes a major refinery operated by Mangalore Refinery and Petrochemicals.

The government is also evaluating potential sites at Bikaner in Rajasthan and Bina in Madhya Pradesh. A feasibility study for Bikaner has been completed and is being finalised, while a pre-feasibility study for Bina has also been completed, with a detailed study expected to follow.

If implemented, these projects could significantly expand India’s strategic storage beyond the 11.83 MT target under Phase-II.

Why does India want a 90-day oil reserve?

A parliamentary committee has recommended that India work towards maintaining 90 days of crude oil storage, which is considered a global benchmark for energy security.

This benchmark is associated with the International Energy Agency, which requires member countries to maintain emergency oil stocks equivalent to at least 90 days of net imports. Although India is not bound by the same framework in the same way, its membership in the IEA makes the benchmark relevant for long-term planning.

India’s current strategic underground storage of 5.33 MT covers only about 9.5 days of crude requirement. However, when commercial inventories are included, the total storage capacity rises to about 74 days of net imports, according to government data presented in Parliament.

This means the 90-day target is not limited to underground reserves alone but reflects a broader national energy security framework.

Parliament flags delays, seeks faster expansion

The parliamentary standing committee has urged the Petroleum and Natural Gas Ministry to accelerate the expansion of strategic reserves.

It has recommended faster completion of tendering processes, timely SEZ notifications, financial closures and improved utilisation of allocated funds. The committee has also called for identification of additional underground cavern sites in geologically suitable regions.

The push comes amid continued global energy uncertainty and rising geopolitical risks affecting oil markets.

India’s objective is to build a stronger emergency oil cushion before the next major supply disruption occurs, rather than responding after a crisis has already begun.

With 5.33 MT of existing strategic storage, 6.5 MT under Phase-II, additional projects under development at Mangaluru, Bikaner and Bina, and expanding international partnerships such as ADNOC’s proposed 30 million barrel expansion, India is steadily building a more resilient and diversified energy security architecture.

However, achieving the 90-day benchmark will require significantly higher storage capacity, faster execution of ongoing projects and deeper integration of strategic, commercial and international energy partnerships.

(With inputs from agencies.)