India is projected to spend ₹1,039 crore on its strategic petroleum reserves in the current financial year (FY26), significantly below the budgeted ₹5,876 crore. This underspending comes at a time of heightened energy security concerns amid tensions in West Asia, which have disrupted global oil supplies. The shortfall has drawn attention because India’s strategic reserves, meant to cover around 9.5 days of supply during disruptions, are currently only about two-thirds full.
As the world’s third-largest energy consumer, India relies on imports for roughly 88 percent of its crude oil requirements. The proposed budget for 2026–27 further reduces allocation for oil reserves to just ₹200 crore, raising concerns about the country’s preparedness for potential supply shocks.
Minister of State for Petroleum and Natural Gas Suresh Gopi reported that Indian Strategic Petroleum Reserve Ltd (ISPRL) currently holds about 3.372 million tonnes of crude, approximately 64 percent of its total storage capacity. India maintains underground storage facilities at Visakhapatnam (1.33 MT), Mangaluru (1.5 MT), and Padur (2.5 MT), which act as buffers for short-term supply disruptions. Including oil marketing company storage, the country’s total crude and petroleum product storage capacity can cover around 74 days of consumption.
The government approved two additional strategic petroleum reserve facilities in 2021, with a combined capacity of 6.5 MT: Chandikhol (4 MT) in Odisha and Padur (2.5 MT) in Karnataka. While construction at Padur has begun, the Odisha project faces delays due to pending land allotment by the state government. Once completed, these new facilities will allow India’s strategic reserves to meet approximately 21 days of emergency crude demand, strengthening the country’s energy security.
