India's strategic oil reserves need urgent expansion to safeguard energy security, experts warn. Global oil prices have surged to record levels, prompting calls for faster stockpiling. The government is urged to increase reserves to 90 days of consumption, currently at 60 days.
The Hindubusinessline reports that India's current strategic oil reserves are insufficient to cover three months of demand. With global prices climbing due to geopolitical tensions and supply chain disruptions, analysts argue that expanding reserves is critical.
This push comes amid growing concerns over energy independence. India imports over 80% of its oil, making it vulnerable to price fluctuations. Experts say that increasing reserves would provide a buffer against supply shocks and stabilize domestic prices. The government has been slow to act, despite repeated warnings from industry leaders.
The debate over strategic reserves has intensified in recent months. With the war in Ukraine and rising tensions in the Middle East, energy security has become a top priority. Some officials argue that the current pace of expansion is inadequate, while others emphasize the need for long-term planning.
India's energy policy has long been shaped by the need to balance economic growth with sustainability. However, the recent surge in oil prices has forced a reevaluation of priorities. As the country seeks to reduce dependence on imports, strategic reserves are seen as a key component of a resilient energy strategy.
