India targets energy security by expanding strategic petroleum reserves amid rising import costs and supply risks from geopolitical tensions.
India’s government has directed state-owned Oil and Natural Gas Corp (ONGC) to construct and fill a new strategic petroleum reserve site, requiring an estimated $1.6 billion investment. The move aims to bolster energy security following supply disruptions and surging import costs tied to geopolitical conflicts, including the Iran war.
Currently, India’s underground reserves hold approximately 5.33 million metric tons of crude oil, covering about 9.5 days of national consumption. The expansion follows a 2022 supply crisis that exposed vulnerabilities in the country’s energy infrastructure and drove fuel prices higher.
No immediate market reaction was reported, but the initiative signals long-term efforts to reduce reliance on volatile global oil markets.