Has India expanded strategic petroleum reserves? The facts amid global oil crisis

The global energy crisis is dragging on due to the US and Israel's war on Iran, and worries about oil supply shocks are growing even stronger as there seems to be no visible end to the conflict anytime soon. India has a buffer stock of petroleum in caverns and supplies with commercial refiners. Amid the global energy crisis, people are now comparing India's strategic petroleum reserves (SPR) with those of larger economies like China.

Questions have also arisen about whether India has increased its own dedicated reserves in recent years. Social media posts, including references to parliamentary data, note that India's SPR storage capacity stood at 5.33 million metric tonnes (MMT) over a decade ago and remains at that level today. So, has India expanded its strategic oil reserves?

A clear answer to this question requires distinguishing between physical storage capacity, actual stocks on hand, and ongoing expansion plans.

India is the world's third-largest oil consumer and relies on imports for roughly 85-88% of its crude requirements. Disruptions in the Strait of Hormuz have quickly translated into higher fuel prices and economic pressure worldwide, though India weathered the shock better than many others.

But let's first understand what strategic reserves are.

Strategic reserves serve as a critical insurance policy. They are government-controlled crude oil stored specifically for emergencies, distinct from the commercial inventories maintained by refiners and oil marketing companies for day-to-day operations.

The Indian Strategic Petroleum Reserve Limited (ISPRL) oversees these dedicated facilities under the Ministry of Petroleum and Natural Gas.

HOW INDIA COMPARES GLOBALLY IN STRATEGIC PETROLEUM RESERVES

India's strategic petroleum reserves remain modest when placed alongside other major players, though the comparison must distinguish between emergency stockpiles and natural underground resources.

China holds the world's largest strategic inventories, estimated at nearly 1.4 billion barrels, built aggressively over the past decade.

The US maintains around 410 million barrels in its SPR, with a total capacity of 714 million barrels. Both nations use these as critical buffers against supply shocks.

India, with its 5.33 MMT (about 39 million barrels) Phase I capacity and current stocks of roughly 24-25 million barrels, ranks much lower in dedicated emergency reserves. While its Phase II expansion is progressing, the country still relies on a smaller buffer, compared to the far larger cushions held by China, the US, and even some other Asian importers like Japan, Malaysia and South Korea.

WHERE DOES INDIA STAND WHEN IT COMES TO STRATEGIC PETROLEUM RESERVE CAPACITY

Official data presented in Parliament in March 2026 provides a clear picture of where India truly stands.

India's operational strategic petroleum reserve capacity stands at 5.33 MMT, housed in three underground rock caverns located at Visakhapatnam (Andhra Pradesh, 1.33 MMT), Mangaluru (Karnataka, 1.5 MMT), and Padur (Karnataka, 2.5 MMT).

These Phase I facilities were developed starting in the mid-2000s and became fully operational between 2015 and 2018. When completely filled, they offer approximately 9.5 days of net crude import cover based on current consumption levels.

As of March 2026, the actual volume stored in these caverns was approximately 3.372 MMT — about 64% of total capacity.

Using standard conversion rates of roughly 7.3 barrels per tonne for typical crude grades, this equates to around 24-25 million barrels.

The precise fill level is described by officials as a "dynamic figure" that varies depending on global oil prices, import schedules, and fiscal decisions.

This means the dedicated SPR currently provides a more modest buffer than its maximum potential.

INDIA'S COMMERCIAL STOCKS OF OIL, PHASE-II OF SPR TO ADD TO CAPACITY

For broader context, India also maintains significant commercial stocks. When these are added to the SPR, the country's overall crude and petroleum product storage capacity is estimated at around 74 days, with oil marketing companies accounting for the majority of that volume.

While helpful, the combined buffer still falls below the International Energy Agency's recommended 90 days of net import cover for member nations, in which India holds associate status.

Both people and the Opposition's observation that capacity has not grown since the 2014 period is true for the operational Phase I infrastructure. The 5.33 MMT figure has remained constant because no new caverns under the original programme have been added. This has fuelled a debate online about the pace of progress on energy security. However, expansion efforts are underway through Phase II of the programme.

In July 2021, the government gave approval for two additional commercial-cum-strategic facilities totalling 6.5 MMT capacity: 4 MMT at Chandikhol in Odisha and an additional 2.5 MMT at the existing Padur site in Karnataka. These projects are being developed on a public-private partnership basis with an estimated investment exceeding Rs 14,500 crore.

Upon completion, they would raise the dedicated SPR capacity to nearly 11.83 MMT, adding roughly another 12 days of emergency cover. As of today, these facilities are still in various stages of development.

In essence, India has not increased the operational capacity of its dedicated strategic oil reserves beyond the 5.33 MMT established under Phase I since more than a decade ago. That core infrastructure figure stands unchanged. According to the government, as of March 26, India had 74 days of total reserve capacity, and actual stock cover is around 60 days, including crude stocks, products stocks and the dedicated strategic storage in caverns.

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