Kamal Ghorui
As tensions in the Middle East enter their second week, concerns are rising over whether India’s energy supplies are sufficient. According to a recent government report, the country has more than 250 million barrels of crude oil and petroleum products in reserve, enough to meet demand for nearly two months. The combined reserves, estimated at around 4,000 crore litres, provide coverage for seven to eight weeks across the country’s energy supply chain.The reserves are spread across multiple storage points, including underground strategic caverns located in Mangalore, Padur and Visakhapatnam. Additional volumes are held in above-ground storage tanks, pipelines and offshore vessels as part of the wider distribution network, the report mentioned, as cited by ANI. It also pushed back against claims that the country holds only about 25 days of reserves, stating that the broader supply chain stockpile significantly extends the country’s buffer. It also highlighted a major shift in the way crude oil is imported with procurement now diversified across 40 countries, compared with 27 nations a decade ago, with the strategy described as being “anchored in national interest”.Although the Strait of Hormuz remains one of the world’s most important oil transit routes, the report notes that only around 40% of India’s crude imports pass through the narrow waterway. The majority, about 60%, reaches India through other routes, with supplies coming from Russia, West Africa, the Americas and Central Asia.
“The days when India’s energy security rose and fell with conditions in a single maritime chokepoint are over,” the document states, adding that any disruption in one corridor would lead to a “managed sourcing adjustment, not a supply emergency”.Russia continues to be India’s biggest crude supplier as of February 2026. The report notes that despite geopolitical pressure in recent years, India has maintained purchases while complying with the G7 price cap rules.“India has never depended on permission from any country to buy Russian oil. India is still importing Russian oil even in February 2026, and Russia is still India’s largest crude oil supplier,” the document says.It also mentions a recent 30-day waiver from the US Treasury allowing continued purchases of Russian oil, saying the move “removes a friction that was never in anyone’s interest to sustain” and acknowledges India’s contribution to stabilising global energy markets.On the domestic front, India’s ethanol blending programme has also reduced dependence on crude imports. The 20% blending initiative now replaces roughly 44 million barrels of crude oil every year.Meanwhile, the country’s refining capacity has expanded to 258 million metric tonnes per annum, exceeding domestic consumption levels estimated between 210 and 230 million metric tonnes per annum.The report says this capacity enabled Indian refiners to supply fuel to Europe when sanctions on Russian crude created shortages in that market. It notes that “Indian refiners do not depend on a fixed slate from a fixed origin,” highlighting the sector’s flexibility in sourcing crude.Data cited from the Petroleum Planning and Analysis Cell shows that retail fuel prices in the country have remained largely stable over the past four years. Between February 2022 and February 2026, petrol prices in Delhi fell by 0.67%. Over the same period, prices increased by 55% in Pakistan and by 22% in Germany.To maintain stable prices, public sector oil companies absorbed significant financial losses. The report states that these firms bore losses of Rs 24,500 crore on petrol and diesel and about Rs 40,000 crore on LPG.It concludes that decisions in the sector are assessed on the basis of “affordability, availability, and sustainability”, while also noting that no fuel pump outlet in the country has run dry over the past twelve years.
