New Delhi is breathing a sigh of relief as the Iran crisis unfolds. Government sources reveal that India maintains robust stockpiles of crude oil, LPG, and LNG, ensuring energy security for the foreseeable future. With approximately 25 days’ worth of crude oil and petroleum products in reserve—including shipments en route to ports—the nation stands well-prepared.
India imports over 85% of its crude oil needs, with nearly half traditionally flowing through the Strait of Hormuz from Middle Eastern suppliers. The recent escalation in Iran has disrupted this vital artery, sending ripples through global energy markets. Yet, proactive measures have positioned India favorably.
Diversification has been key. Imports from Africa, Russia, and the United States have surged, reducing reliance on the volatile Gulf route. Strategic petroleum reserves at Padur (2.25 million metric tons), Visakhapatnam (1.33 MMT), and Mangaluru (1.5 MMT) provide a critical safety net. A new facility at Chandikhol on the eastern seaboard is under development, further bolstering capacity.
Oil marketing companies like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum hold multi-week inventories, replenished via alternate pathways. To fortify buffers, the government has halted petroleum product exports, prioritizing domestic needs.
This stockpiling strategy allows India to tap reserves in emergencies, mitigating spikes in global prices. Brent crude has surpassed $80 per barrel, up 10% post-crisis, inflating import bills and stoking inflation fears. Last fiscal year, India spent $137 billion on crude imports; the current year (April 2025-January 2026) has already seen $100.4 billion for 206.3 million tons.
While short-term price pressures loom, India’s diversified sourcing and ample reserves offer resilience against prolonged disruptions. Economists watch closely, but for now, the energy outlook remains stable.