India's Current Strategic Petroleum Reserves Can Only Meet Around 9-10 Days Of Net Oil Import Needs, Says Report

India's current strategic petroleum reserves (SPRs) can meet only around 9-10 days of the country's net crude oil import requirements, according to a new report by the Council on Energy, Environment and Water (CEEW). This highlights the significant vulnerability in the nation's energy security framework, which, compared to other oil-importing countries, remains sharply under covered.

The report, How Secure is India's Energy Future? Assessing Accessibility, Reliability, and Affordability warns that India's dependence on imported fossil fuels extends far beyond crude oil volumes. Instead, it exposes the economy to a range of risks, including supply disruptions, inflation, industrial competitiveness, and fiscal pressures.

India imports around 80-90 per cent of its crude oil needs, and over 85 per cent of these imports are sourced from just six countries, such as Russia and major West Asian producers. Such concentration leaves the country particularly vulnerable to geopolitical tensions, shipping disruptions, and sudden price spikes in international energy markets. The report notes that countries like Japan and South Korea maintain strategic oil reserves sufficient to cover more than 200 days of imports, giving them a far stronger cushion against global supply shocks.

The report also noted that while the country imports nearly half of its natural gas requirements in the form of liquefied natural gas (LNG), it has no dedicated strategic gas storage facilities. This exposes fertiliser manufacturers, city gas distribution networks and industrial consumers to potential supply interruptions.

According to the report, disruptions in crude oil, LNG, liquefied petroleum gas (LPG), coal or key maritime trade routes can rapidly translate into higher transport and cooking fuel costs, increased fertiliser subsidies, elevated inflation and reduced industrial competitiveness. These risks have become more pronounced amid growing geopolitical uncertainties and volatile global energy markets.

The report argues that strengthening India's energy security will require more than expanding strategic oil reserves. It recommends diversifying crude oil and LNG suppliers, modernising refinery infrastructure, optimising gas utilisation and expanding storage capacity. At the same time, it stresses that accelerating the transition to clean energy can reduce long-term dependence on imported fossil fuels.

However, it also cautions that the clean energy transition will create new strategic dependencies on critical minerals, advanced technologies and manufacturing supply chains. To address these risks, India must invest in domestic manufacturing, recycling ecosystems, diversified supply chains and international partnerships for critical minerals.

The study also recommends promoting electric vehicle adoption, electrifying industrial processes where feasible, reconfiguring refineries to prepare for declining gasoline demand, and building resilient green technology supply chains.

As India continues to pursue rapid economic growth while aiming for energy independence, the report underscores that future energy security will depend not only on securing fuel supplies but also on building a more diversified, resilient and sustainable energy system capable of withstanding global shocks.