India’s strategic petroleum reserves (SPRs) can currently cover only around 9-10 days of the country’s net crude oil imports, according to a new report released by the Council on Energy, Environment and Water (CEEW).
The report, published amid growing global geopolitical uncertainty and volatile energy markets, highlights concerns over India’s preparedness for major supply disruptions. It also flags vulnerabilities arising from the country’s dependence on imported coking coal from Australia and non-coking coal from Indonesia.
Energy experts have urged greater diversification of import sources, expansion of strategic reserves, and faster adoption of clean energy alternatives to strengthen India’s long-term energy security. The findings come as India remains the world’s third-largest oil consumer and imports nearly 85 per cent of its crude oil needs.
Growing Energy Security Concerns
The CEEW report has drawn attention to the gap between India’s emergency fuel stockpiles and those maintained by other major import-dependent economies.
Strategic petroleum reserves are government-controlled crude oil stockpiles designed to protect countries against supply disruptions caused by wars, geopolitical tensions, natural disasters, or sudden market shocks.
India currently stores its strategic reserves in underground rock caverns at Visakhapatnam, Mangaluru, and Padur, while additional facilities are being planned to enhance storage capacity.
According to the report, India’s reserves cover only about 9–10 days of net crude imports, a figure that remains significantly lower than those of countries such as Japan and South Korea, which maintain reserves sufficient for more than 200 days. While India also has access to commercial inventories held by oil companies, researchers argue that strategic reserves serve as a critical safety net during prolonged crises.
The report notes that the country’s heavy reliance on imported crude leaves it exposed to international developments, including conflicts in oil-producing regions, disruptions in shipping routes, and fluctuations in global commodity prices.
The findings come at a time when energy markets continue to be shaped by geopolitical instability. Recent years have seen sharp oil price swings triggered by the Russia-Ukraine conflict, tensions in the Middle East, supply disruptions in key shipping corridors, and production decisions by major oil-exporting countries. For India, such disruptions can directly affect fuel prices, transportation costs, inflation levels, and broader economic growth.
Coal Dependence Adds Risks
Beyond oil, the report highlights growing concerns around India’s coal security. Although India is one of the world’s largest coal producers and possesses significant domestic reserves, several industries continue to depend on imported coal. The steel sector, in particular, relies heavily on imported coking coal, a specialised grade essential for blast furnace-based steel production.
The report identifies Australia’s dominance in global coking coal exports as a potential strategic vulnerability for India. Any disruption caused by extreme weather events, export restrictions, labour disputes, or logistical bottlenecks in Australia could affect Indian steel manufacturers and increase production costs. Similar disruptions in the past have led to global supply shortages and significant price volatility.
The study also points to India’s exposure to policy decisions in Indonesia, a key supplier of non-coking coal. Indonesia has previously imposed export restrictions and domestic market obligations to prioritise its own energy needs, demonstrating how policy shifts in supplier nations can influence international coal markets.
Given India’s continued dependence on coal for electricity generation and industrial activities, such developments could impact energy availability and affordability.
Researchers argue that these risks underline the need for a more diversified approach to energy security. The report recommends expanding strategic petroleum reserves, broadening the range of crude oil and coal suppliers, increasing domestic production where feasible, and accelerating investments in renewable energy sources.
India has already made significant investments in solar power, wind energy, green hydrogen, biofuels, and electric mobility initiatives, but experts suggest that further efforts will be necessary to reduce exposure to global fuel market disruptions.
The report further notes that energy security has become increasingly important as India’s economy grows and energy demand rises. The country’s ambitions to expand manufacturing, infrastructure, and industrial production will require reliable access to fuel and raw materials, making resilience against supply shocks a key policy priority.
The Logical Indian’s Perspective
The CEEW report serves as an important reminder that energy security is not merely an economic concern but also a matter of national resilience and public welfare. In a world where conflicts, climate-related disasters, and geopolitical tensions can disrupt supply chains overnight, ensuring reliable access to energy becomes essential for protecting livelihoods, controlling inflation, and sustaining development. India’s growing economy requires a long-term strategy that balances immediate energy needs with future sustainability goals.
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