Strategic Petroleum Reserves

India's Strategic Petroleum Reserve is a purpose-built emergency stock of crude oil maintained under government arrangements. Its central purpose is to preserve energy security by providing a temporary supply cushion when normal crude imports are seriously disrupted.

Strategic objectives

The reserve is intended to protect the economy against sudden external supply shocks rather than meet ordinary petroleum demand.

• It provides an emergency buffer during disruptions caused by war, geopolitical instability, natural disasters or interruptions in transport and supply chains.
• It allows refineries to continue receiving crude temporarily, helping sustain supplies of fuels needed for transport, industry, agriculture and defence.
• It gives the government time to arrange alternative imports, manage demand and coordinate other crisis responses.
• By limiting immediate exposure to disrupted imports, it reduces the economic vulnerability arising from India's high import dependence for crude oil.

Storage architecture and administration

The programme is implemented by Indian Strategic Petroleum Reserves Limited, a wholly owned subsidiary of the Oil Industry Development Board under the Ministry of Petroleum and Natural Gas.

• The first phase created 5.33 million metric tonnes of storage capacity in underground rock caverns.
• The facilities are located at Visakhapatnam, Mangaluru and Padur, with stored crude capable of being supplied to connected refineries.
• Underground caverns provide secure, large-scale storage and reduce the surface land requirement.

Role within energy security

Strategic reserves complement, but are distinct from, the operational inventories held by refineries and oil-marketing companies for normal business needs.

• They are a short-term crisis instrument, not a permanent substitute for reliable imports, diversified suppliers and domestic production.
• Their effectiveness depends on adequate filling, rapid drawdown infrastructure, refinery compatibility and timely replenishment after use.
• They are not primarily intended for routine price control; indiscriminate releases would weaken preparedness for genuine supply emergencies.

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