India should expand its capacity to store crude and refined fuels while global oil prices remain low, Oil Minister Hardeep Singh Puri said on Thursday, arguing that the country can use the current market environment to build buffer stocks.
Puri said the nation’s aggregated crude holdings - at ports, terminals, refineries and in strategic petroleum reserves - currently cover between 76 and 80 days of supply. He added that New Delhi "should have more," signalling a policy priority to increase physical storage.
Addressing a recent regional disruption, the minister described the situation as a lesson. "Maybe that’s one of the lessons we’ve learned. We have learned the lesson and we will try to increase storage," he said, referencing the crisis in the Gulf region.
Beyond storage policy, Puri provided a snapshot of the financial strain on state-owned fuel retailers in the April-June quarter. He reported revenue losses of 199 billion rupees on gasoline sales during that quarter. Losses tied to diesel sales were described as nearly 1.45 trillion rupees over the same period.
The minister also cited a consolidated figure for the June quarter: total losses on the sale of diesel, petrol and liquefied petroleum gas reached 747.81 billion rupees, according to his remarks.
In outlining broader energy security measures, Puri stressed the importance of strengthening outreach to bilateral partners. He framed such engagement as a complementary element of the country’s approach to securing fuel supplies and managing risk.
The minister’s statements link three policy areas: the physical capacity to hold crude and refined product stocks, the immediate fiscal impacts on state retailers from current pricing dynamics, and diplomatic engagement to diversify or secure supply lines. Together they outline priorities the government appears set to address while market prices remain favourable for stock-building.
Summary
India’s oil minister called for increased fuel and crude storage capacity during a period of low oil prices, reported existing stock coverage of 76 to 80 days, disclosed significant revenue losses at state fuel retailers for April-June, and urged stronger bilateral outreach as part of energy security efforts.
- Key points:
- India’s combined crude stocks cover 76 to 80 days of supply, but officials say the country "should have more."
- State fuel retailers reported revenue losses of 199 billion rupees on gasoline and nearly 1.45 trillion rupees on diesel in the April-June quarter; total losses for diesel, petrol and LPG in the June quarter were put at 747.81 billion rupees.
- The government plans to increase storage and strengthen bilateral outreach as part of its energy security strategy.
- Risks and uncertainties:
- Current storage levels may be judged insufficient in the event of further regional disruptions, creating supply risk for domestic fuel markets - affecting the oil and gas and refining sectors.
- Large revenue shortfalls at state fuel retailers could strain public finances and the fuel retail sector if losses persist.
- Reliance on diplomatic or bilateral outreach for energy security introduces uncertainty around the timing and scale of any material improvements to supply resilience.
Sectors impacted: oil and gas production and logistics, refining and fuel retail, government energy policy and strategic reserves.