India has no plans to release oil from its strategic reserves in coordination with the International Energy Agency despite rising global crude prices, a government source said. The decision comes as major economies discuss using emergency reserves to stabilise the market amid supply disruption. Global oil prices recently surged above $119 per barrel, reaching their highest levels since mid-2022. The spike followed escalating tensions and supply disruptions linked to the conflict involving Iran, raising fears of shipping disruptions on key energy routes.
According to the source, India’s fuel supplies remain “reasonably comfortable”, and the government is not considering restrictions on fuel exports either. The country currently holds strategic petroleum reserves at three locations, with a total storage capacity of about 5.33 million metric tonnes of crude oil, of which around 4 million tonnes are already stored. India is an associate member of the International Energy Agency and has previously participated in coordinated releases of emergency reserves. In 2021, New Delhi released about 5 million barrels of oil from its strategic reserves as part of a global effort led by the United States to ease rising energy prices.
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Meanwhile, Indian refiners have been purchasing additional crude supplies, including cargoes of Russian oil that were previously stranded at sea, after Washington granted New Delhi a 30-day waiver allowing the purchase of shipments loaded before recent sanctions measures. The government is also exploring additional energy supplies to meet domestic demand. Officials said India expects to receive more liquefied petroleum gas (LPG) imports from countries including the United States and Canada, while refiners have been asked to maximise domestic LPG production. Overall, the government’s stance reflects confidence in India’s current fuel stock levels, even as global markets remain volatile amid geopolitical tensions and supply risks.
