India Holds Over 250 Million Barrels Of Energy Reserves, Says Govt Report

India currently maintains a combined buffer of more than 250 million barrels of crude oil and refined petroleum products. This is equivalent to nearly 4,000 crore litres, as per a government report. The report said the stockpile provides seven to eight weeks of coverage across the entire supply chain.

The reserves are spread across underground strategic storage facilities as well as commercial infrastructure such as tanks, pipelines, and vessels. Strategic reserves are stored in underground caverns located at Mangalore, Padur, and Visakhapatnam.

Supply Routes And Diversification

The report said India has expanded its crude sourcing network significantly over the last decade. The country now procures oil from around 40 countries, compared with 27 countries ten years ago. This diversification, according to the report, has reduced vulnerability to disruptions in any single region.

One key concern in the global oil trade is the Strait of Hormuz. The government report noted that:

• About 40% of India’s crude imports pass through the Strait of Hormuz.

• Around 60% of shipments arrive through alternative routes.

These alternative flows include supplies from Russia, West Africa, the Americas, and Central Asia. Note that the ongoing conflict in the Middle East has resulted in almost a complete closure of the Strait of Hormuz. This has elevated crude prices and has put pressure on oil and gas stocks in India and across the globe.

Russia Remained Largest Supplier

Russia continued to be India’s largest crude oil supplier as of February 2026, according to the report. It further added that India does not require approval from other nations to buy Russian oil. It also said that the Indian government has complied with the G7 price cap rules governing Russian oil transactions.

Domestic Capacity And Ethanol Blending

Alongside imports, the report highlighted the role of domestic initiatives aimed at lowering crude dependence. India’s 20% ethanol blending programme currently displaces roughly 44 million barrels of crude oil each year. The programme mixes ethanol derived from agricultural feedstock into petrol. The government has also expanded refining capacity over the years.

India’s refining capacity now stands at 258 million metric tonnes per annum (mmtpa). This exceeds the country’s estimated consumption demand of 210–230 mmtpa.

Other Findings

The report also found that between February 2022 and February 2026:

• Petrol prices in Delhi came down by 0.67%. They rose 22% in Germany and 55% in Pakistan.

• Public oil sector firms absorbed ₹24,500 crore in losses on petrol and diesel to maintain price stability.

• Losses on liquefied petroleum gas (LPG) sales were about ₹40,000 crore.

Also Read: Oil Surges Above $110 A Barrel

What Does It Hold For The Sector?

Higher refining capacity and broader import sources can bring down supply risks. It can also boost India’s position as a major refining hub.

Also, the losses absorbed by public sector oil marketing firms show the financial risks involved in keeping retail fuel prices stable. It is a factor that investors in the oil and gas sector can monitor when assessing the profitability of oil marketing companies.

Sources

The Economic Times

Moneycontrol