Indian refiners have adequate crude oil inventories: Sharma

Indian refiners have maintained sufficient crude oil reserves to ensure supply stability, according to recent government assessments. A government source confirmed that refiners hold adequate stockpiles to meet operational requirements, underscoring effective inventory management and preparedness in the refining sector. These reserves, combined with strategic imports, provide a buffer against potential disruptions, particularly amid ongoing geopolitical tensions in the Middle East.

India's energy strategy has increasingly focused on diversifying crude sources to mitigate risks. Non-Strait of Hormuz supplies now account for 70% of imports, up from 60% in 2025, with additional crude sourced from the U.S., Russia, West Africa, and Venezuela. This shift follows heightened regional instability, which has prompted Indian refiners to prioritize alternative supply routes. For instance, U.S. sanctions waivers have facilitated Russian crude imports, while new partnerships in Latin America and West Africa further bolster supply lines.

Current reserve levels are reported to cover domestic demand for approximately 50 days, with onshore storage holding 144 million barrels and strategic reserves adding 9.5 days of coverage. However, analysts note that diversification may increase costs due to higher freight and insurance expenses. Despite these challenges, officials emphasize that India's refining capacity—exceeding domestic consumption— supports energy security.

The government has also reassured the public that there are no immediate plans to raise fuel prices, as existing reserves and diversified imports help stabilize supply. These measures reflect a proactive approach to managing India's energy needs amid global uncertainties.