India's strategic petroleum reserves can cover only 9-10 days of the country's net crude imports, a new report by the Council on Energy, Environment and Water (CEEW) revealed on Wednesday, June 17, 2026. The finding underscores India's vulnerability to global supply disruptions, especially when compared to other major import-dependent economies.
Reserve coverage and international comparison
The report, titled 'How Secure is India's Energy Future? Assessing Accessibility, Reliability, and Affordability', highlighted that countries such as Japan and South Korea maintain strategic reserves sufficient for over 200 days of net imports. In contrast, India's reserves cover barely a week and a half, leaving the country exposed to price spikes and supply interruptions.
| Country | Strategic reserve coverage (days of net imports) |
|---|---|
| India | 9-10 |
| Japan | >200 |
| South Korea | >200 |
Import dependency and supply risks
According to the CEEW report, over 85% of India's crude oil imports come from just six countries, including Russia and key West Asian suppliers. This concentration limits India's ability to quickly shift sources during regional crises. Hemant Mallya, fellow at CEEW, said: "Disruptions in crude oil, LNG, LPG, coal, or key shipping routes can quickly affect cooking costs, transport fuel prices, fertiliser subsidies, industrial competitiveness, and inflation."
Gas and coal vulnerabilities
The report also draws attention to India's lack of dedicated strategic gas storage facilities, despite importing nearly half its natural gas supply as LNG. This leaves fertiliser plants and city gas networks exposed, the report said. On the coal front, India's security is increasingly influenced by its continued dependence on imported coking coal — particularly from Australia — for steelmaking, and exposure to Indonesian export policies for non-coking coal imports. Domestically, declining coal quality and rising production costs signal a narrowing cost advantage for coal power over firm renewable power.
Energy transition and new dependencies
The CEEW report argues that clean energy can reduce India's exposure to continuously imported fossil fuels. However, it cautions that clean energy creates a different kind of strategic dependence: on critical minerals, technologies, and industrial inputs. This dependence must be managed through domestic manufacturing, supply-chain diversification, recycling, and strategic international partnerships.
Mallya outlined the next phase: "India's next phase of energy security must move beyond securing fossil fuels to a clear transition plan:" He listed actions including:
- Optimising gas system utilisation
- Avoiding further refinery expansion
- Accelerating viable EV adoption
- Electrifying industry
- Reconfiguring refineries for lower gasoline demand
- Building resilient green technology supply chains
For commodity analysts and procurement teams, the report reinforces the need to monitor India's growing import appetite and its limited strategic buffer. Any supply shock in crude, LNG, or coal could quickly translate into price volatility across energy markets.
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