𝗜𝗻𝗱𝗶𝗮 𝗣𝗿𝗼𝗽𝗼𝘀𝗲𝘀 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗖𝗿𝘂𝗱𝗲 𝗢𝗶𝗹 𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝗶𝗲𝘀
India considers a new policy to increase crude oil reserves for energy security. This plan follows the model used by China. The proposal aims to protect the country against supply shocks like the US-Iran conflict.
Current status of strategic crude reserves at the end of 2025: • India: 21 million barrels • China: 1,397 million barrels • United States: 413 million barrels • Japan: 263 million barrels
Key details of the proposal:
- Refiners currently hold about 15 days of crude oil for operations.
- The new plan may require refiners to hold 30 days of national consumption.
- India consumes approximately 5 million barrels of oil daily.
- Total required inventory would reach about 150 million barrels.
- Doubling inventory could cost refiners nearly Rs 60,000 crore.
- Companies must also invest thousands of crores in new storage tanks.
Industry challenges:
- Building new storage facilities requires large capital investments.
- Construction of tank facilities takes several years.
- Refiners want flexibility in storage locations and commercial use of oil.
- Experts suggest building storage near ports to help global trading.
Source: The Times of India