Rising tensions in the Middle East, especially related to Iran, have raised concerns about India’s energy security. According to estimates by energy data firm Kpler, India has an available stock of approximately 100 million barrels of crude oil. This total reserve includes oil stored in refineries and storage tanks, underground strategic petroleum reserves, and crude oil loaded in tankers heading towards India at sea.
Experts believe that even if supplies through the Strait of Hormuz are completely halted, the existing reserves can meet the country’s oil needs for approximately 40 to 45 days.
India’s Dependence on the Strait of Hormuz
India imports approximately 88 percent of its total crude oil requirements from abroad. More than half of this—about 50 to 55 percent—is supplied from Middle Eastern countries such as Iraq, Saudi Arabia, UAE, and Kuwait. Most of the oil from these countries reaches India via the Strait of Hormuz.
According to energy analysis data, India imports an average of 2.5 to 2.7 million barrels of crude oil daily through this narrow sea route, which accounts for nearly half of its total imports. Globally, this route is also extremely important—approximately 20-21 percent of the world’s seaborne crude oil exports and about 20 percent of LNG shipments pass through this route.
Its importance for India is not limited to crude oil alone. LNG supplies from Qatar also largely depend on this route, meeting the country’s gas-based energy needs.
Status of Strategic Reserves
India has developed its Strategic Petroleum Reserves (SPR) at three major locations to deal with emergency situations—
Visakhapatnam (Andhra Pradesh)
Mangalore (Karnataka)
Padur (Karnataka)
According to government data, if strategic reserves, refinery stocks, and other available reserves are combined, the country could have oil equivalent to approximately 74 days of consumption.
However, energy analysis firms present different assessments. According to them, if the situation of a complete disruption of supply specifically from the Strait of Hormuz is considered and only commercial stock is taken as the basis, these reserves would only be able to meet needs for approximately 40 to 45 days.
It is important to note that the purpose of these reserves is to deal with sudden supply shocks, not to manage a situation of complete supply shutdown for an extended period.
Immediate Impact on Prices
Following the latest tensions related to Iran, significant fluctuations have been observed in global crude oil prices. The international benchmark Brent Crude crossed $80 per barrel, indicating an increase of about 10 percent in recent days. In some trading sessions, it fluctuated in the range of $77 to $82 per barrel.
For a large importing country like India, this directly impacts the import bill. In fiscal year 2024-25, the country spent approximately $137 billion on crude oil imports. Meanwhile, in the current fiscal year from April to January, about $100.4 billion has already been spent on importing 206.3 million tonnes of oil. If prices continue to rise, the import bill will increase, which could also put pressure on inflation and the rupee’s status.
