Despite disruptions in flows through the Strait of Hormuz, India’s crude oil, LPG, and LNG supplies are generally secure, according to government sources. The country has roughly 25 days’ worth of crude and petroleum product reserves, including shipments in transit.
Nearly half of the country’s crude oil imports originate in the Middle East, and the proportion is above 85%. A more resilient supply has been achieved, nevertheless, thanks to diversification toward the US, Russia, and Africa and increased strategic reserves.
Currently, supplies can be kept for several weeks by the state-run oil marketing companies: Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited. Companies have been instructed by the government to reduce the export of petroleum products in order to increase domestic buffer reserves.
Additional protection against supply shocks and price volatility is provided by India’s strategic storage facilities in Pudur, Visakhapatnam, and Mangaluru, as well as an upcoming reserve at Chandikhol.
