Focus on India’s strategic oil reserves amid prolonged Iran conflict and choked Strait of Hormuz (AFP)The concern stems largely from disruptions around the Strait of Hormuz, a narrow but strategically crucial shipping route through which nearly 30 per cent of India’s crude oil imports pass.
India sources crude oil from around 40 countries and has diversified its suppliers over the years.
Government estimates suggest the country requires around 55 lakh barrels of crude oil every day.
Oil shock at doorstep Fuel prices in India have remained largely stable through the three months of disruption around the Hormuz.
But the bigger question is how long New Delhi can continue shielding consumers from a sharp spike in crude oil prices.
America’s raging war on Iran has triggered anxious discussions in India over its energy security, especially after Prime Minister Narendra Modi called for fuel-saving measures and later spoke about a global “decade of disasters”. Focus on India’s strategic oil reserves amid prolonged Iran conflict and choked Strait of Hormuz (AFP)
The concern stems largely from disruptions around the Strait of Hormuz, a narrow but strategically crucial shipping route through which nearly 30 per cent of India’s crude oil imports pass. India sources crude oil from around 40 countries and has diversified its suppliers over the years. Still, as the world’s third-largest energy consumer and most populous nation, India remains heavily dependent on imports for nearly 90 per cent of its oil needs, leaving it vulnerable to disruptions in global supply chains.
Government estimates suggest the country requires around 55 lakh barrels of crude oil every day.
Oil shock at doorstep Fuel prices in India have remained largely stable through the three months of disruption around the Hormuz. But the bigger question is how long New Delhi can continue shielding consumers from a sharp spike in crude oil prices.
The pressure is already mounting. Brent crude touched $111 a barrel in international markets on Monday. At the same time, government data showed oil companies were incurring losses of nearly ₹1,000 crore every day in early May as they continued to hold retail fuel prices steady.
Last week, the government raised petrol and diesel prices by ₹3 per litre. In Delhi, public sector oil companies are now selling petrol at ₹97.77 per litre and diesel at ₹90.67 per litre.
It is for moments like these that countries build strategic petroleum reserves (SPRs) — massive emergency crude oil stockpiles maintained by governments to protect their economies during wars, supply disruptions, sanctions, or sudden price spikes.
First conceived in a time of war The idea of maintaining emergency oil reserves began to take shape toward the end of the Second World War, when countries realised how vulnerable energy supply chains could become during conflicts.
The first major global push, however, came during the 1956 Suez Canal crisis, when disruptions in maritime trade exposed the risks of depending heavily on imported oil.
Then came the turning point: the 1973 Yom Kippur War. Oil-producing Arab nations coordinated supply cuts and sharply raised prices, triggering a global energy crisis.
In response, the United States passed the Energy Policy and Conservation Act in 1975 under President Gerald Ford, laying the foundation for the world’s first large-scale Strategic Petroleum Reserve.
