Strategic Petroleum Reserves

How India stores crude oil in underground caverns in Visakhapatnam, Mangaluru and Padur to cushion supply shocks, and how this compares with other countries.

India keeps strategic petroleum reserves (SPR) for emergencies.

Locations

Underground rock caverns at Visakhapatnam, Mangaluru and Padur, holding about 5.3 million tonnes of crude.

How long

This covers about 9 to 10 days of India’s crude needs; with company stocks, total reserves cover more.

Why

Supply disruptions from wars, like in the Gulf.
Price spikes.

Buying cheap

India filled reserves when oil prices crashed in 2020, saving money.

Expansion

Plans to add reserves at Chandikhol (Odisha) and expand Padur.

Comparison

The US Strategic Petroleum Reserve is much larger; IEA members aim for 90 days of net imports.

Economic view

Reserves are like insurance: costly to hold but valuable in crises.

The cheap fill

When crude prices collapsed in April 2020, India filled its underground caverns at low prices.

Thinking India has months of oil stored

Strategic reserves cover about 9 to 10 days of crude needs.

Key takeaways

India stores crude in caverns at three sites.
They hold about 5.3 million tonnes.
Reserves cover about 9 to 10 days of crude needs.
India filled them cheaply in 2020.