New Delhi: India has enough crude oil and fuel stocks to meet domestic demand for six to eight weeks, even if supplies from West Asia are disrupted. Top government officials said the country is monitoring the situation closely after rising military tensions involving Iran, Israel and the United States.
About half of India’s crude oil and LPG imports pass through the Strait of Hormuz, a key global energy route. Media reports suggest shipping has slowed after attacks and threats in the region.
25 Days of Crude, 25 Days of Fuel
Officials said India has enough crude oil in storage tanks, pipelines and ships to last about 25 days. Fuel stocks such as petrol, diesel and aviation turbine fuel (ATF) can also meet demand for another 25 days.
In addition, India has around 100 million barrels of crude oil in commercial and strategic petroleum reserves. These reserves are stored at facilities in Mangalore, Padur and Visakhapatnam. This gives the country a strong safety cushion.
If imports through the Strait are disrupted, India can buy more oil from the US, Russia, West Africa and Latin America.
Prices May Rise
While shortages are unlikely in the short term, oil prices have already increased. Brent crude has crossed USD 80 per barrel, about 10 per cent higher since the crisis began. Higher oil prices can increase India’s import bill and push up inflation.
India spent USD 137 billion on crude imports in the last financial year. In the first ten months of the current fiscal year, it spent over USD 100 billion.
Government Monitoring 24x7
Oil Minister Hardeep Singh Puri said the country is well prepared. The oil ministry has set up a 24x7 control room to track supply and stock levels.
India is the world’s third-largest oil importer and has diversified its supply sources in recent years. Officials said the country is in a “reasonably comfortable” position and can take further steps if needed.
