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One-third of India’s strategic petroleum reserves are empty: Why this matters for fuel security

March 23, 2026 5 min read Economics Internal Security GS3 (Energy Security Indian Economy Infrastructure)
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What Happened

  • The Ministry of Petroleum and Natural Gas informed the Rajya Sabha on March 23, 2026 that India's Strategic Petroleum Reserves (SPRs) are holding approximately 3.37 million metric tonnes (MMT) of crude oil — about 64% of their total 5.33 MMT storage capacity, meaning roughly one-third of capacity is empty.
  • The SPRs — located at Visakhapatnam (Andhra Pradesh), Mangaluru and Padur (Karnataka) — are in focus due to the ongoing West Asia war disrupting oil flows through the Strait of Hormuz.
  • At full capacity, the three SPR caverns cover roughly 9.5 days of India's crude oil requirement; current combined national stocks (strategic + commercial refiners' inventory) cover approximately 74 days.
  • The IEA recommends that countries maintain oil stocks equivalent to at least 90 days of net imports; India is an IEA associate member and not obligated but encouraged to meet this benchmark.
  • Experts and government officials have highlighted that the current crisis underscores the long-overdue need to expand India's dedicated strategic reserves and fast-track approved Phase-II projects.

What Happened (continued context)

  • Earlier in March 2026, a senior government official stated India had enough stocks for up to eight weeks; the actual SPR data in Rajya Sabha revealed the strategic-only reserves cover less than 10 days, with the remainder being commercial inventories.
  • In July 2021, the government approved establishment of two more SPR sites (Chandikhol, Odisha — 4 MMT; additional Padur capacity — 2.5 MMT) and commercialisation of Phase-I reserves. ADNOC (UAE) signed an agreement to store 750,000 tonnes at Mangaluru SPR.

Static Topic Bridges

India's Strategic Petroleum Reserve Infrastructure (ISPRL)

Indian Strategic Petroleum Reserve Limited (ISPRL) is a wholly-owned subsidiary of the Oil Industry Development Board (OIDB) under the Ministry of Petroleum and Natural Gas. It was created to build, own, and manage India's strategic crude oil storage infrastructure in underground rock caverns. The concept of national petroleum reserves globally traces to the 1973 Arab Oil Embargo, which caused the first major oil shock and prompted Western nations to create emergency buffers.

  • Visakhapatnam (AP): 1.33 MMT capacity — first SPR to be commissioned
  • Mangaluru (Karnataka): 1.50 MMT capacity
  • Padur (Karnataka): 2.50 MMT capacity — largest single site
  • Total Phase-I capacity: 5.33 MMT (million metric tonnes), equivalent to ~36–38 million barrels
  • Phase-II approved (July 2021): Chandikhol (Odisha) — 4 MMT; Padur expansion — 2.5 MMT (6.5 MMT total)
  • Additional proposed sites (not yet decided): Bikaner and Rajkot (~6 MMT additional)
  • ADNOC agreement (2021): UAE's national oil company to store 750,000 tonnes at Mangaluru under commercialisation model — first foreign use of Indian SPRs
  • ISPRL parent: Oil Industry Development Board (OIDB), under MoPNG

Connection to this news: The current SPR fill level of 64% means India is operating with about 36% of its emergency buffer capacity unused — a significant gap exposed precisely when a supply shock materialises. The commercialisation of SPR space to ADNOC (allowing oil-in-storage against future release rights) is a model that can both keep caverns filled and generate strategic reserves at minimal cost.

International Energy Agency (IEA) and the 90-Day Reserve Obligation

The International Energy Agency was established in 1974 (following the 1973 oil crisis) under the OECD framework to coordinate the energy policies of developed nations and manage oil supply emergencies. Member countries are required to maintain emergency oil reserves equivalent to at least 90 days of net imports. In a supply crisis, the IEA can coordinate a collective release from these emergency stocks.

  • IEA founded: 1974, OECD-affiliated body
  • Membership: 31 countries (mostly developed) + association agreements with major emerging economies
  • India's status: IEA Associate Member (since 2017) — not obligated to maintain 90-day reserves
  • 90-day benchmark applies to: net imports (imports minus exports of crude and petroleum products)
  • IEA collective release (March 2026): IEA members decided to release 400 million barrels from emergency stocks in response to current West Asia crisis
  • India's current combined cover: ~74 days (strategic + commercial refinery inventories) — below the 90-day IEA benchmark
  • Historical IEA releases: 1991 Gulf War, 2005 Hurricane Katrina, 2011 Libya supply disruption, 2022 Russia-Ukraine conflict

Connection to this news: India's 74-day cover falls short of the IEA's 90-day standard precisely when a supply shock is materialising. The gap is particularly acute in the dedicated SPR component (~9.5 days at full capacity), which is designed for government-controlled release independent of commercial decisions.

Energy Security: India's Diversification Strategy

Energy security is the reliable availability of energy sources at affordable prices. For an import-dependent country like India, energy security has three dimensions: diversity of supply sources, strategic storage buffers, and development of domestic alternatives (renewables, biofuels). India's energy diversification has been a stated policy objective under the Ministry of Petroleum and Natural Gas.

  • India's crude import dependency: >88% of consumption
  • Pre-conflict West Asia share: ~50%+ of crude imports (Saudi Arabia, Iraq, UAE)
  • Post-conflict diversification acceleration: Russia, West Africa (Nigeria, Angola), US WTI, Latin America
  • India imports ~2.5–2.7 million barrels per day through Strait of Hormuz (~40–50% of total crude imports)
  • Even with Russia-rerouted crude, LPG and LNG alternatives from outside the Gulf are harder to source quickly
  • Commercial angle of SPR expansion: ISPRL could lease storage to West Asian refiners, offsetting freight costs into Southeast Asian markets — generating revenue while keeping tanks filled

Connection to this news: The current crisis is a live stress test of India's energy diversification policy. While crude alternatives (especially Russian crude) have partially offset Gulf supply disruptions, the absence of adequate LPG and LNG alternatives — and a below-target SPR fill level — reveals that diversification remains incomplete, making Phase-II SPR expansion urgent.

Key Facts & Data

  • India's SPR storage capacity (Phase-I): 5.33 MMT across 3 underground caverns
  • Current SPR fill (March 2026): ~3.37 MMT (~64% of capacity; ~one-third empty)
  • SPR location breakdown: Visakhapatnam (1.33 MMT), Mangaluru (1.50 MMT), Padur (2.50 MMT)
  • SPR days of cover at full capacity: ~9.5 days of India's crude requirement
  • Combined national stock (SPR + commercial): ~74 days
  • IEA 90-day recommendation: India currently below this benchmark
  • Phase-II approved (July 2021): 6.5 MMT additional (Chandikhol 4 MMT + Padur 2.5 MMT)
  • ADNOC storage deal (2021): 750,000 tonnes at Mangaluru under commercialisation
  • IEA collective release (March 2026): 400 million barrels from member country reserves
  • India's crude import dependency: >88%; Hormuz-dependent portion: ~40–50% of imports
  • Brent crude (March 23, 2026): crossed $108/barrel (~40% rise in 3 weeks)