India 'well stocked' with crude oil to meet supply disruptions: Puri

India holds around 25 days of crude and petroleum products and may diversify crude sourcing as the Strait of Hormuz faces disruptions, Oil Minister Puri said

India is well-stocked with inventories of crude oil and key petroleum products, including petrol, diesel, and aviation turbine fuel (ATF), to deal with short-term disruptions as the war intensifies in West Asia, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said on Tuesday.

 

Also, Indian energy companies would diversify procurement to access supplies that are not routed through the Strait of Hormuz, a critical choke-point that has been under attack after Iran retaliated following US and Israeli military strikes, Puri said.

 

“At present, the government is reasonably comfortable in terms of stocks. Safeguarding the interests of Indian consumers remains the highest priority. Based on continuous monitoring, the government is cautiously optimistic that phased measures can be taken, if required, to further mitigate the situation,” the minister added.

 

India currently holds 25 days of crude oil stock and 25 days of petroleum products inventory, including petrol and diesel, a top government official said on condition of anonymity. He added that the country also holds liquefied petroleum gas (LPG) stocks of approximately 25-30 days.

 

As tensions rise in West Asia, critical energy infrastructure has come under attack in the Gulf region, leading to the closure of Strait of Hormuz, which supports 30 per cent of global seaborne crude trade. “If Strait of Hormuz is closed for longer, the shipments (from West Asia) would take the Cape of Good Hope route (to reach India),” the official said.

 

India consumes 5.6 million barrels per day (bpd) of crude oil, out of which around 40 per cent comes through Strait of Hormuz, he added.

 

The crisis in West Asia has raised energy security challenges for India as the country relies heavily on the region for supplies of crude oil, LPG, and liquefied natural gas (LNG). Roughly 83 per cent of India’s LPG supply, 56 per cent of LNG, and 51 per cent of crude oil imports are sourced via routes linked to Hormuz, according to equity research firm Yes Securities.

 

Saudi Aramco recently halted operations at its largest refinery at Ras Tanura on the Persian Gulf coast following drone strikes while QatarEnergy has also temporarily paused LNG production due to attacks on its facilities. Qatar is the largest LNG supplier to India.

 

“If QatarEnergy closes for longer, we will have to address the issue and look for alternatives,” the official said, adding that as of now, the Indian government is not planning to cut down on petroleum exports, nor looking at rationalising the use of LPG in the country.

 

As tensions deepen in West Asia, India is looking at sourcing crude oil from geographies such as West Africa and the US that bypass Strait of Hormuz, while also drawing on its energy inventory, Business Standard had reported earlier.

 

Strategic Petroleum Reserves

 

India has established strategic petroleum reserves (SPR) facilities with a 5.33 million tonne (mt) capacity of crude oil at three locations — 1.33 mt capacity at Vishakhapatnam in Andhra Pradesh, 1.5 mt capacity at Mangaluru in Karnataka, and 2.5 mt capacity at Padur in Karnataka — according to a written reply by the oil ministry in Lok Sabha in August 2025.

 

These reserves are meant to act as buffer for short-term supply shocks by providing for around 9.5 days of crude oil requirement. After taking into account the capacity of storage facilities operated by oil marketing companies (OMCs) of 64.5 days, the total national capacity for storage of crude oil and petroleum products is enough to provide for 74 days cover.

 

However, the quantity of crude available in the caverns varies depending on market conditions.

 

To further augment the SPR capacity, the government had in July 2021 approved the establishment of two additional commercial-cum-strategic petroleum reserve facilities with total storage capacity of 6.5 mt — one at Chandikhol (4 mt) in Odisha and the other at Padur (2.5 mt) in Karnataka.

 

For these projects, India Strategic Petroleum Reserves Ltd (ISPRL) is seeking investment from international and domestic oil companies in public private partnership (PPP) mode, with a total project cost of ₹14,527 crore.