How Long Can India Handle Crude Oil Supply Disruption? Hardeep Singh Puri Cites 76-80 Days of Fuel Stocks

India, the world's third-largest oil consumer and one of the biggest importers of crude oil, has sufficient fuel reserves to withstand a temporary disruption in global energy supplies, Petroleum and Natural Gas Minister Hardeep Singh Puri has said. His remarks come amid growing concerns over tensions in West Asia and fears that any disruption in the Strait of Hormuz could impact global oil markets.

India Has Fuel Stocks for Next 76 to 80 Days, Says Petroleum Minister; But Is It Enough?

Speaking to CNN-News18, Puri said India currently possesses fuel stocks capable of meeting domestic demand for approximately 76 to 80 days. The reserves include strategic petroleum reserves, inventories maintained by refineries and commercial stocks held by oil marketing companies.

The minister expressed confidence that even if oil shipments through the Strait of Hormuz were halted for around a month, India would be able to manage the situation without facing an immediate fuel shortage.

Why a Strait of Hormuz Disruption Matters for India

The Strait of Hormuz is one of the world's most important energy corridors, serving as a key route for crude oil exports from major Gulf producers. Any disruption in this narrow shipping channel can have a significant impact on global oil prices and energy security.

For India, the issue is particularly important because the country depends heavily on imported crude oil to meet its growing energy needs. While India has diversified its import basket over the years, a prolonged disruption in global supplies could still affect fuel prices and inflation.

However, Puri said India's existing stock levels, diversified sourcing strategy and strong refining infrastructure provide enough flexibility to deal with short-term disruptions.

"We all have domestic situations, we have stocks," the minister said, adding that India currently exceeds its preferred benchmark of maintaining around 60 days of coverage each for crude oil, LPG and natural gas.

India Consumes Nearly 55 Lakh Barrels of Oil Every Day

According to data from the Ministry of Petroleum and Natural Gas, India consumes approximately 55 lakh barrels of crude oil every day. Industry estimates cited by the India Brand Equity Foundation (IBEF) place daily consumption at around 5.74 million barrels, enough to fill more than 900 Olympic-sized swimming pools every 24 hours.

That single figure highlights the magnitude of India's energy challenge. Every geopolitical development affecting oil-producing regions has direct implications for one of the world's fastest-growing major economies.

India currently ranks as the third-largest oil consumer globally, accounting for approximately 5.46% of worldwide oil consumption of about 102.5 million barrels per day. Yet domestic production remains limited, with India producing only around 6 lakh barrels of crude oil daily. As a result, nearly 89% of the country's oil requirement must be imported.

Imports Account for Nearly 90% of India's Crude Requirement

Despite efforts to boost domestic production, India's dependence on imported crude continues to rise.

According to IBEF data, crude oil imports increased by 3.82% to 243.22 million metric tonnes in FY25. The trend reflects the country's expanding economy, growing transportation sector and rising industrial demand.

India's energy demand is expected to increase significantly in the coming decades. Industry projections indicate that oil demand could rise from approximately 4.05 million barrels per day in FY22 to 7.2 million barrels per day by 2030 and further to 9.2 million barrels per day by 2050.

Similarly, overall petroleum consumption is projected to grow at a compound annual growth rate (CAGR) of 4.59%, reaching nearly 500 million tonnes by FY40 from about 223 million tonnes in FY23.

Can India Survive a Strait of Hormuz Closure? Here's How 24 Refineries & Fuel Stocks Help

The country currently operates 24 refineries, providing one of the world's largest refining networks. These facilities maintain substantial inventories and offer flexibility in processing crude sourced from different regions.

The government has also strengthened relationships with multiple energy-producing nations to reduce dependence on any single supplier. Over the past few years, India has expanded purchases from countries across the Middle East, Russia, Africa and the Americas.

Puri pointed to recent cooperation with the United Arab Emirates (UAE), which supplied additional LPG cargoes when India required extra volumes. He also highlighted expected gas supplies from Mozambique, which are expected to further strengthen India's energy security framework.

Apart from crude oil reserves, the government has expanded LPG storage capacity and accelerated domestic exploration efforts. The number of LPG connections in the country has increased from around 14 crore in 2014 to more than 33 crore today, significantly expanding access to clean cooking fuel.

From 1973 Oil Shock to 2022 Ukraine Crisis: Times When Rising Crude Prices Shook India's Economy

India's focus on maintaining fuel reserves is shaped by past experiences with global energy disruptions.

1973 Oil Crisis: How the OPEC Embargo Quadrupled Crude Prices and Hit India

The first major oil shock came in 1973 when the OPEC embargo removed millions of barrels of supply from global markets. Crude oil prices surged from around $3 per barrel to nearly $12 within a year, causing India's oil import bill to jump from approximately $500 million to $1.3 billion and triggering inflationary pressures across the economy.

1979 Iranian Revolution

A second crisis emerged in 1979 following the Iranian Revolution. Fuel shortages, rising energy costs and supply disruptions contributed to economic stress and widespread shortages of essential commodities.

The Gulf War Crisis (1990-91): When India Pledged Gold to Avoid Default

Perhaps the most dramatic episode occurred during the 1990-91 Gulf War and balance-of-payments crisis. Faced with dwindling foreign exchange reserves and soaring oil prices, India was forced to pledge gold reserves to raise dollars and avoid a sovereign default. The crisis ultimately paved the way for the landmark economic liberalisation reforms of 1991.

Russia-Ukraine Conflict (2022)

More recently, the Russia-Ukraine conflict in 2022 sent Brent crude prices soaring from around $80 per barrel to nearly $130. India's monthly oil import bill surged from roughly $12 billion to almost $19 billion, while the rupee weakened sharply. In response, India significantly increased purchases of discounted Russian crude, with Russia's share in India's oil imports rising from around 2% in FY22 to as high as 36% by 2024.

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