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Energy Crisis and Strategic Petroleum Reserve

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25 March 2026

Energy Crisis and Strategic Petroleum Reserve

Recent geopolitical tensions and disruptions in key oil transit routes have exposed the structural vulnerability of India’s energy security framework. India imports more than 80% of its crude oil requirement, making it highly susceptible to global supply shocks, price volatility, and strategic coercion. Any disruption in regions such as West Asia or chokepoints like the Strait of Hormuz can immediately affect domestic availability and pricing, with cascading effects on inflation, fiscal stability, and industrial output.

India has established Strategic Petroleum Reserves (SPR) at locations such as Visakhapatnam, Mangaluru, and Padur, with a total capacity of about 5.33 million metric tonnes (MMT)

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