India Holds 250 Million Barrels of Oil Buffer Amid Global Energy Tensions, Say Government Sources
India currently holds more than 250 million barrels of crude oil and petroleum products, providing the country with a buffer of around seven to eight weeks across its supply chain despite the ongoing global energy uncertainty, according to top government sources.
The assurance comes amid rising concerns over global energy supply disruptions following geopolitical tensions in West Asia and fears of possible disruptions in maritime routes such as the Strait of Hormuz.
Officials said the country is well prepared to handle short-term disruptions and that claims suggesting India has only 25 days of reserves are inaccurate and misleading.
Strategic Oil Stock Distribution
India’s energy reserves are not concentrated in a single location. Instead, the stocks are spread across multiple storage systems, including:
• Above-ground storage tanks
• Underground strategic petroleum caverns
• Pipeline networks
• Terminal tankage facilities
• Offshore vessels transporting crude
In addition, the country maintains dedicated Strategic Petroleum Reserve (SPR) facilities in Mangalore, Padur, and Visakhapatnam.
Officials emphasised that the buffer should not be viewed as a countdown timer. Instead, it acts as a strategic cushion while daily crude imports continue to arrive through diversified routes.
Diversified Energy Supply
Government sources highlighted that India’s energy security strategy has evolved significantly over the past decade. The country has expanded its supplier base from 27 countries to nearly 40 countries across six continents.
Major suppliers now include Russia, countries in West Africa, Central Asia, the Americas and other non-Gulf regions.
Officials noted that only about 40% of India’s crude imports pass through the Strait of Hormuz, while roughly 60% arrive through alternative maritime routes, reducing dependence on any single chokepoint.
Even if Hormuz shipping routes were disrupted completely, officials believe the impact on India would be partial rather than severe due to diversified sourcing.
Role of Russian Oil
India has continued importing discounted crude from Russia since the beginning of the Russia-Ukraine War in 2022.
According to officials, Russia remains India’s largest crude supplier, and imports continued even amid pressure from Western nations.
The strategy helped India maintain energy stability and reduce import costs during volatile global markets.
Strong Refining Capacity
India’s refining infrastructure is another key pillar of its energy security.
The country has a refining capacity of 258 million metric tonnes per annum (MMTPA) — the fourth-largest in the world — which exceeds its domestic consumption of 210–230 MMTPA.
This flexibility allows Indian refiners to process a wide variety of crude grades from different global sources, ensuring stable supply even during disruptions.
India has also become the world’s fifth-largest exporter of refined petroleum products, supplying fuels to global markets including Europe.
Conclusion
Officials said India’s energy preparedness is the result of more than a decade of strategic policy planning focused on diversified sourcing, expanding reserves, and strengthening refining capacity.
They emphasised that the country’s energy system is designed to absorb shocks and adjust supply routes rather than face a supply emergency during geopolitical crises.
Our Final Thoughts
India’s current oil buffer highlights the country’s long-term shift toward strategic energy resilience. By diversifying suppliers, expanding refining capacity, and building large strategic reserves, India has created a system capable of managing geopolitical shocks. While global conflicts may cause temporary volatility in oil markets, the country’s preparation suggests that domestic energy supplies remain secure for the foreseeable future.