As tensions in the Middle East enter their second week, concerns are growing over whether India’s energy supply is adequate. According to a recent government report, the country has more than 250 million barrels of crude oil and petroleum products in reserve, enough to meet demand for about two months.
The combined reserves, estimated at around 4,000 crore litres, provide coverage for seven to eight weeks across the country’s energy supply chain.The reserves are spread across multiple storage points, including strategic underground caves located in Mangalore, Baddur and Visakhapatnam. Additional quantities are being held in aboveground storage tanks, pipelines and offshore vessels as part of the broader distribution network, the report said.
It also disputed claims that the country holds only about 25 days of reserves, noting that broader supply chain inventory significantly increases the country’s reserves.
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He also highlighted a major shift in the way crude oil is imported, with purchases now diversified across 40 countries, compared to 27 countries a decade ago, with the strategy described as “grounded in the national interest.”Although the Strait of Hormuz remains one of the world’s most important oil transit routes, the report indicates that only about 40% of India’s crude oil imports pass through the narrow waterway.
The majority, about 60%, reach India via other routes, with supplies coming from Russia, West Africa, the Americas and Central Asia.
“The days when India’s energy security rose and fell with conditions in a single sea lane are over,” the document states, adding that any disruption in a single sea lane would lead to “a managed adjustment of sources, not a supply emergency.”Russia remains India’s largest crude oil supplier as of February 2026.
The report notes that despite geopolitical pressures in recent years, India has maintained its purchases while adhering to price cap rules set by the G7.“India has never relied on permission from any country to purchase Russian oil. India continues to import Russian oil even in February 2026, and Russia remains the largest supplier of crude oil to India,” the document says.He also points to the recent 30-day waiver from the US Treasury allowing purchases of Russian oil to continue, saying the move “removes friction that it was never in anyone’s interest to maintain” and recognizes India’s contribution to the stability of global energy markets.On the domestic front, India’s ethanol blending program has also reduced dependence on crude oil imports. The 20% blending initiative now replaces approximately 44 million barrels of crude oil each year.At the same time, the country’s refining capacity expanded to 258 million metric tons per year, exceeding estimated domestic consumption levels by 210 to 230 million metric tons per year.The report says that this capacity enabled Indian refiners to supply fuel to Europe when sanctions imposed on Russian crude led to a shortage in that market.
“Indian refineries do not rely on a fixed list of fixed origin,” the report notes, highlighting the sector’s flexibility in sourcing crude oil.Data from the Petroleum Planning and Analysis Cell shows that retail fuel prices in the country have remained largely stable over the past four years. Between February 2022 and February 2026, petrol prices in Delhi fell by 0.67%. During the same period, prices rose by 55% in Pakistan and by 22% in Germany.In order to maintain price stability, public sector oil companies incurred significant financial losses. The report notes that these companies incurred losses of Rs 24,500 crore on petrol and diesel and about Rs 40,000 crore on LPG.He concludes that decisions in this sector are evaluated on the basis of “affordability, availability and sustainability,” while also noting that not a single fuel pumping port in the country has run dry over the past twelve years.