Centre forms task force to expand strategic oil (Img: Internet)
New Delhi: Amid growing concerns over global energy security due to the ongoing conflict in West Asia, the Centre has constituted a high-level task force to assess and expand India's strategic reserves of crude oil, liquefied petroleum gas (LPG), and natural gas.
The move comes as geopolitical tensions and supply disruptions continue to impact international energy markets, prompting the government to strengthen the country's long-term energy preparedness.
According to government officials, the newly formed task force will evaluate the additional reserve capacity India may require in the coming years and recommend ways to enhance storage infrastructure.
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The panel will also examine financing options for these projects, including public-private partnership (PPP) models, leasing arrangements, and commercialisation strategies. The task force is expected to submit its recommendations within the next six to eight weeks.
Officials said the government is currently in the consultation phase and is assessing various approaches before finalising a roadmap for expansion.
Despite disruptions caused by the ongoing Iran-linked conflict in West Asia, India currently maintains around 60 days' worth of crude oil, LPG, and natural gas reserves.
To ensure uninterrupted cooking gas supplies, the Petroleum Ministry has also directed state-run oil marketing companies (OMCs) to maintain a minimum reserve of 30 days for LPG.
The government has repeatedly stated that there is no immediate concern regarding fuel availability, although it continues to closely monitor the evolving global situation.
Officials revealed that state-owned oil marketing companies continue to face substantial losses due to rising global fuel costs. Current under-recoveries are estimated at around ₹25-30 per litre on diesel and nearly ₹690 per LPG cylinder.
The government has been balancing consumer interests with energy security concerns while exploring alternative crude oil sources. India currently imports crude from nearly 40 countries and continues to diversify its sourcing strategy.
India imports nearly 90 per cent of its crude oil requirements and maintains strategic petroleum reserves through the Indian Strategic Petroleum Reserve Limited (ISPRL).
The country's existing strategic storage facilities at Visakhapatnam, Mangaluru and Padur have a combined capacity of 5.33 million metric tonnes. Additional commercial-cum-strategic storage projects with a capacity of 6.5 MMT have already been approved at Chandikhol and Padur under the PPP model.
The latest task force is expected to accelerate efforts to strengthen India's energy security framework and reduce vulnerability to future global supply shocks.
