Amidst the increasing tension in the Middle East, concerns are often raised about oil supply, but according to a government report, India’s energy security is currently in a strong position. The report shows that India has a combined buffer stock of more than 250 million barrels of crude oil and refined petroleum products. This is equivalent to about 4,000 crore liters of fuel and can support the country’s supply chain for about 7 to 8 weeks.
Strategic reserves and robust storage systems
According to the report, this stock has been kept safe at many places. This includes underground strategic oil reserves built in Mangalore, Padur and Visakhapatnam. Apart from this, oil stocks are also kept in big tanks built on land, pipeline networks and ships in the sea. Due to this system, if there is a problem in any one supply chain, the country’s fuel supply is not affected.
India is buying oil from many countries
India has also changed its energy procurement strategy significantly in the last few years. Earlier India used to import oil from about 27 countries, whereas now this number has increased to about 40 countries. According to the report, India’s oil purchase is decided entirely on the basis of national interests. The Strait of Hormuz, an important sea route of the world, is often considered sensitive for oil supply. But only about 40 percent of India’s total crude oil imports come through this route, while the remaining 60 percent of the oil reaches through alternative routes from regions like Russia, West Africa, America and Central Asia.
Russia still the biggest supplier
Till February 2026, Russia remains the largest supplier of crude oil to India. The report said that India never bought Russian oil by relying on the permission of any country. However, while following international rules, India has also followed the price cap rules of G7.
Oil requirement decreasing due to ethanol blending
20 percent ethanol blending program in the country is also helping in reducing oil consumption. Through this, the need of about 44 million barrels of crude oil is reduced every year.
Impact on refining capacity and prices
India’s refining capacity has now reached 258 million metric tons per year, while the country’s consumption is around 210 to 230 million metric tons. Due to its strong refining capacity, India also helped in meeting the fuel shortage in Europe after the sanctions on Russia. According to government data, the price of petrol in Delhi decreased by 0.67 percent between February 2022 and February 2026, while during the same period, petrol became costlier in Pakistan by 55 percent and in Germany by 22 percent.
To keep prices stable, government oil companies also incurred losses of about Rs 24,500 crore on petrol and diesel and about Rs 40,000 crore on LPG. According to the report, the objective of India’s energy policy is to keep fuel cheap, available and sustainable.