Government Considers Increasing India's Fuel Reserves to Meet Three Months of Demand

India Considers Plan to Boost Emergency Fuel Reserves to Three Months' Demand

A medium-term plan to expand India's emergency fuel availability to cover up to three months of demand is under consideration by the government. This proposal is part of a larger strategy aimed at reassessing the country's energy security framework following recent geopolitical disruptions and volatility in global crude markets.

India imports nearly 89 percent of its oil needs, making it highly vulnerable to global supply shocks and swings in crude prices. In 2025-26, India imported $240.7 billion worth of crude oil, gold, vegetable oils, and fertilizers, equivalent to 31.1 percent of the country's total import bill of $775 billion. The largest component was crude petroleum, with imports worth $134.7 billion.

The proposed plan may involve asking public sector oil companies to build additional crude inventories over time. This move is aimed at reducing India's vulnerability to supply disruptions and sudden spikes in global oil prices. The plan is expected to be taken up after the current geopolitical situation stabilizes.