Oil Minister Hardeep Singh Puri confirms India's Strategic Petroleum Reserve (SPR) can last up to 74 days in case of international supply disruptions when he addressed the Rajya Sabha.
This strategic petroleum reserve helps provide India with energy security so that we are not affected by severe international crises.
It is also true that India possesses the world's fourth-largest oil refining capacity, with ambitions to double its capacity from 260 million metric tonnes to 320 million metric tonnes yearly, makes it the world's third-largest consumer of crude oil and the world's fifth-largest exporter of petroleum products.
Puri emphasized the importance of a strategic reserve to secure economic stability, particularly in times of global turbulence. He stated, "The strategic petroleum reserve is designed to ensure that in case of total global turbulence, we must have enough stock left to meet our needs."
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Currently, India’s reserves are held in caverns located in Andhra Pradesh and Karnataka, with expansion plans underway for Odisha. Together with the reserves at refineries and floating platforms, the total stock lasts for 74 days, although the International Energy Agency (IEA) recommends 90 days.
The government, through Indian Strategic Petroleum Reserve Limited (ISPRL), has built SPR facilities with a total capacity of 5.33 million metric tonnes across three locations. As of now, 77% of the reserve is filled, with 50% used for commercial purposes.
During the COVID-19 period, India took advantage of low prices, filling its reserves to full capacity, saving approximately Rs 5,000 crore.
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