Maldives Insight

NEW DELHI – India maintains a combined energy buffer exceeding 250 million barrels of crude oil and refined petroleum products, equivalent to approximately 4,000 crore litres, according to a recent government report. This substantial stockpile is capable of providing seven to eight weeks of coverage across the entire supply chain, directly addressing and countering earlier claims of significantly lower national reserves.

The report details that these strategic reserves are distributed across underground caverns in Mangalore, Padur, and Visakhapatnam, alongside above-ground storage tanks, pipelines, and offshore vessels, underscoring a comprehensive infrastructure for energy security.

Diversified Sourcing Strategy Bolsters Security

India’s energy procurement strategy is described as “anchored in national interest,” with sourcing now diversified across 40 countries, an increase from 27 a decade ago. This diversification significantly reduces reliance on single choke points.

Notably, while the Strait of Hormuz remains a critical global maritime passage, only approximately 40 per cent of India’s crude imports traverse it. The remaining 60 per cent arrive via unaffected alternative routes from regions including Russia, West Africa, the Americas, and Central Asia.

The document asserts that “The days when India’s energy security rose and fell with conditions in a single maritime chokepoint are over,” further noting that any disruption in a single corridor now results in a “managed sourcing adjustment, not a supply emergency.”

Russian Oil Imports Continue Amidst Geopolitical Landscape

As of February 2026, Russia remains India’s largest crude oil supplier. Despite ongoing international geopolitical pressures over the past three years, the report clarifies that “India has never depended on permission from any country to buy Russian oil.” It affirms that India continues to import Russian oil and has consistently complied with all G7 price cap rules.

A recent 30-day waiver from the US Treasury permitting continued purchases of Russian oil is noted as removing “a friction that was never in anyone’s interest to sustain,” and is recognised for acknowledging India’s role in stabilising global markets.

Domestic Capacity Exceeds Demand, Ensures Stability

On the domestic front, India’s 20 per cent ethanol blending programme is now displacing roughly 44 million barrels of crude oil annually. The national refining capacity has reached 258 million metric tonne per annum (mmtpa), comfortably exceeding the national consumption demand, which ranges from 210 to 230 mmtpa. This robust infrastructure allowed Indian refiners to bridge fuel gaps in Europe following sanctions on Russian crude.

The report underscores that “Indian refiners do not depend on a fixed slate from a fixed origin,” citing this operational flexibility as a primary security asset. Data from the Petroleum Planning and Analysis Cell further indicates that retail fuel prices in India have remained stable for four consecutive years.

Between February 2022 and February 2026, petrol prices in Delhi saw a slight decrease of 0.67 per cent, in stark contrast to increases of 55 per cent in Pakistan and 22 per cent in Germany during the same period. To maintain these stable rates, public sector oil companies absorbed significant losses, amounting to ₹24,500 crore for petrol and diesel, and approximately ₹40,000 crore for LPG.

The report concludes that every decision within the sector is rigorously tested against principles of “affordability, availability, and sustainability,” highlighting that no pump outlet in India has run dry in twelve years.

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