India currently maintains a combined energy buffer of over 250 million barrels of crude oil and refined petroleum products, equivalent to approximately 4,000 crore litres, according to a government report. This stockpile provides seven to eight weeks of coverage across the full supply chain, countering claims that the country holds only 25 days of reserves. The reserves are distributed across underground strategic caverns in Mangalore, Padur, and Visakhapatnam, as well as above-ground tanks, pipelines, and offshore vessels.The report states that India’s energy procurement remains “anchored in national interest,” with sourcing diversified across 40 countries compared to 27 a decade ago. While the Strait of Hormuz is a critical global chokepoint, only about 40 per cent of India’s crude imports pass through it, while 60 per cent arrive via unaffected alternative routes from Russia, West Africa, the Americas, and Central Asia.
“The days when India’s energy security rose and fell with conditions in a single maritime chokepoint are over,” the document notes, adding that any disruption on a single corridor results in a “managed sourcing adjustment, not a supply emergency”.
Russia remains India’s largest crude oil supplier as of February 2026. Despite international geopolitical pressure over the last three years, the report clarifies that “India has never depended on permission from any country to buy Russian oil. India is still importing Russian oil even in February 2026, and Russia is still India’s largest crude oil supplier,” and has complied with all G7 price cap rules. A recent 30-day waiver from the US Treasury permitting continued purchases “removes a friction that was never in anyone’s interest to sustain” and recognises India’s role in stabilising global markets.On the domestic front, the 20 per cent ethanol blending programme now displaces roughly 44 million barrels of crude oil annually. Domestic refining capacity has reached 258 million metric tonne per annum (mmtpa), exceeding the national consumption demand of 210 to 230 mmtpa.
This infrastructure allowed Indian refiners to bridge fuel gaps in Europe following sanctions on Russian crude. The report emphasises that “Indian refiners do not depend on a fixed slate from a fixed origin,” citing this flexibility as a primary security asset.
Citing data from the Petroleum Planning and Analysis Cell, the report shows that retail fuel prices in India remained stable for four consecutive years. Between February 2022 and February 2026, petrol prices in Delhi decreased by 0.67 per cent, while they rose by 55 per cent in Pakistan and 22 per cent in Germany.
To maintain these rates, public sector oil companies absorbed losses of Rs 24,500 crore for petrol and diesel, and approximately Rs 40,000 crore for LPG. The report concludes that every decision in the sector is tested against “affordability, availability, and sustainability,” noting that no pump outlet has run dry in twelve years.
