Strategic oil reserves for just six days; funds underspent

AS THE WEST Asia conflict disrupts critical energy flows, India's strategic petroleum reserves (SPR) have just six days of crude stockpiles.

- SAURAV ANAND

Budget data show that against an allocation of ₹5,876 crore in the current financial year to fill and expand the SPR, the government is likely to spend only ₹1,039 crore, while provisioning for the next fiscal has been cut to just ₹200 crore.

The underspending comes at a time when the Strait of Hormuz — through which nearly 40% of India’s crude imports are routed — has been severely impacted by geopolitical tensions.

In a written reply to the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said, “Currently, ISPRL (Indian Strategic Petroleum Reserves Limited) has around 3.372 million tonne of crude stock available which is around 64% of the total storage capacity.”

COUNTRY'S THREE THE underground reserves at Visakhapatnam, Mangaluru and Padur can together hold 5.33 million tonne (MT), translating to about nine-and-a-half days of crude cover at full capacity. With inventories currently at around two-thirds, the effective buffer is significantly lower.

Gopi noted that reserves are not static. "The actual reserve isa dynamic number depending on the stocks and actual consumption, both of which are not static," he said.

For a country that imports over 88% of its crude requirements, the gap is significant.