‘60 days of oil stocks, 800,000 tonnes LPG’: Govt releases stock details amid ‘emergency’ fears| India News
India’s Energy Lifeline Examining Strategic Fuel Reserves Key Takeaways
Amid global energy uncertainties, India’s Ministry of Petroleum and Natural Gas recently shed light on the nation’s critical fuel reserves. This transparency offers a crucial snapshot of India’s preparedness, closely monitored by Omni 360 News. The government confirmed India possesses a strategic crude oil stocking capacity for about 74 days, with current stock cover standing robustly at around 60 days. This national reserve acts as a vital buffer, insulating the country from potential supply disruptions or sudden international price surges.
Beyond crude oil, India also maintains a significant reserve of 800,000 tonnes of Liquefied Petroleum Gas (LPG). This ensures stability in domestic cooking fuel supplies for millions of households.
These strategic petroleum reserves (SPRs) are managed by Indian Strategic Petroleum Reserves Limited (ISPRL). Currently, 5.33 million tonnes (MT) of crude oil can be stored in underground rock caverns at Visakhapatnam, Mangaluru, and Padur. These facilities are designed for maximum security. An additional 6.5 MT capacity is under construction in Chandikhol (Odisha) and a second phase at Padur, which will elevate India’s total strategic storage to 11.83 MT, aligning with the 74-day target.
A smart strategy involves an “inventory monetisation” scheme. Here, 29.5 million barrels of crude oil are held under agreements allowing foreign oil companies to store crude in India’s facilities. Crucially, India retains the first right of refusal to these stocks during emergencies. This innovative approach enhances effective stock cover without immediate financial burden, reflecting proactive national energy resilience.
The government’s disclosure, corroborated by regional news outlets, aims to assure citizens and industries of robust supply chain security. This overview underlines India’s strategic foresight in safeguarding its energy future.
Key Takeaways:
- India holds about 60 days of strategic crude oil reserves, with capacity for 74 days.
- An additional 800,000 tonnes of LPG stock ensures domestic stability.
- Strategic Petroleum Reserves are expanding, reinforcing national energy security.
- Innovative policies like inventory monetisation boost effective stock.
