India's Strategic Petroleum Reserves: Path to 90-Day Target
UPSC / SSC current affairs note · Security
Why in news
India's energy security is under focus due to the US-Iran conflict, highlighting the need for robust strategic reserves. The government has approved Phase II expansion of strategic petroleum reserves, and is working with the UAE for additional storage. Experts call for a broader strategy covering crude oil, LPG, and LNG.
Background
India's strategic petroleum reserves (SPR) are underground storages to mitigate supply disruptions. Phase I created 5.33 MMT capacity at Visakhapatnam, Mangaluru, and Padur, covering about 9.5 days of consumption. Phase II aims to add 6.5 MMT at Chandikhol and Padur under PPP model.
Key facts
India's current dedicated SPR capacity is 5.33 MMT, equivalent to ~9.5 days of crude oil consumption (as per March 2026 PIB data).
Phase II expansion of 6.5 MMT approved at Chandikhol (Odisha) and Padur (Karnataka) under PPP model.
Total SPR capacity after Phase II will be 11.88 MMT, moving closer to the 90-day reserve target.
India is working with UAE for 30 million barrels of crude storage capacity.
Experts advocate a three-tier strategic reserves policy: large physical reserves for crude oil, distributed operational-security reserves for LPG, and contractual/virtual reserves for LNG.
LNG is expensive and technically difficult to store for long periods, hence virtual reserves are suggested.
Sourav Mitra (Grant Thornton Bharat) and Pranav Master (Crisil Intelligence) are quoted experts.
Prelims pointers
- Strategic Petroleum Reserves (SPR) – Phase I: 5.33 MMT at Visakhapatnam, Mangaluru, Padur.
- Phase II: 6.5 MMT at Chandikhol (Odisha) and Padur (Karnataka) under PPP.
- Total capacity after Phase II: 11.88 MMT.
- Target: 90 days of crude oil consumption.
- Cooperation with UAE for 30 million barrels storage.
- Three-tier reserves: crude (physical), LPG (distributed), LNG (contractual/virtual).
Mains angles
- Discuss India's energy security strategy in light of geopolitical tensions and supply disruptions.
- Critically examine the adequacy of India's strategic petroleum reserves and the need for diversification to LPG and LNG.
- Evaluate the role of PPP models in expanding strategic reserves and energy infrastructure.