Govt Plans to Expand Fuel Cover From 60 Days to 3 Months

The government is evaluating a proposal by the Ministry of Petroleum and Natural Gas to increase India’s fuel availability from around 60 days to nearly three months of demand.

The review comes amid global volatility in crude oil prices and geopolitical tensions. Public sector oil companies may be asked to build larger inventories once external conditions stabilise. 

What Is the Government Considering for India’s Fuel Availability? 

The government is considering increasing the country’s emergency fuel buffer.

Here are the key details: 

Detail	Current / Proposed Status
Current fuel availability	Around 60 days
Proposed cover	Up to 3 months of demand
Main objective	Reduce supply-shock risk
Possible route	Larger inventories with PSU oil companies
Current status	Under consideration; no final decision yet

Why Is India Reviewing Its Fuel Cover Now? 

India imports nearly 89% of its oil needs, making the economy sensitive to global supply disruptions and crude price hikes.

In 2025-26, India imported crude oil worth $134.7 billion. Crude petroleum was the largest component among major imports, followed by gold, vegetable oils, and fertilisers.

This high import dependence makes petroleum reserves important for fuel planning, inflation management, and economic stability.

What Does India’s Current Fuel Availability Include?

India’s current fuel availability is not limited to strategic petroleum reserves.

It includes:

• crude oil stored in strategic reserves
• refined fuel stocks with oil marketing companies
• fuel available in pipelines
• supplies already in transit

This means the proposed increase would be to strengthen India’s overall fuel backup, not just expand one type of storage.

What Role Can PSU Oil Companies Play?

Public sector oil companies may be asked to hold larger crude stockpiles as part of the proposed plan.

This could include companies such as:

• Indian Oil Corporation
• Bharat Petroleum Corporation
• Hindustan Petroleum Corporation

These commercial inventories can complement strategic reserves to improve India’s preparedness during global supply disruptions.

What Role Does ISPRL Play in India’s Petroleum Reserves?

ISPRL stands for Indian Strategic Petroleum Reserve Limited.

It manages India’s strategic crude oil storage facilities. The country currently has a strategic storage capacity of 5.33 million metric tonnes across:

• Visakhapatnam
• Mangaluru
• Padur

These reserves act as a safety buffer during supply shortages, geopolitical conflicts, or sudden crude price spikes.

How Can Larger Petroleum Reserves Help India?

A larger reserve base can support energy security in India by reducing immediate pressure during global supply shocks.

It may help:

• Maintain fuel supply during disruptions
• Support refinery operations
• Reduce short-term pressure from crude price spikes
• Improve planning for oil marketing companies
• Strengthen India’s response to external risks

For an import-dependent economy, higher petroleum reserves can act as a cushion during uncertain global market conditions.

Final Outlook

India’s proposal to raise fuel availability to three months shows a stronger focus on long-term energy security. 

No final decision has been taken yet. The next key factors to watch will be the proposal timeline, storage requirements, PSU oil company participation, crude price trends, and how India balances strategic reserves with commercial inventories.

Source: https://www.moneycontrol.com

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