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India ranks among the top five refining hubs globally and is the fourth-largest refiner after the United States, China and Russia
The process of importing crude is managed by both public and private sector companies, including Indian Oil, Bharat Petroleum, Hindustan Petroleum and Reliance Industries.
India has built up enough oil storage capacity to sustain itself for nearly 75 days in the event of a sudden disruption in global supplies, Petroleum and Natural Gas Minister Hardeep Singh Puri has said, underlining the country’s growing energy security framework. With daily consumption estimated at around 55-56 lakh barrels, the reserve buffer reflects a significant strengthening of storage and procurement systems over the past decade.
As the world’s third-largest consumer of crude oil, India produces only about 12-13% of its requirements domestically and depends heavily on oil imports for the rest. Over the years, however, its sourcing pattern has undergone a major transformation. Earlier, Iraq, Saudi Arabia and Iran dominated as the country’s primary suppliers. In recent years, Russia emerged as the largest source, at one point accounting for nearly 30% of India’s crude imports, though data from December 2025 indicated some decline amid sanctions and global pressure.
India has since widened its supplier base significantly. The number of countries from which it imports oil has grown from 27 to around 40, reflecting a conscious effort to diversify risk. As of February 2026, Russia continues to be a major supplier, followed by Iraq, Saudi Arabia and the UAE. Imports from the United States have also increased, while new possibilities are being explored in Venezuela, where India is considering purchases of heavy crude.
Guyana, currently one of the fastest-growing oil producers in the world, has invited Indian companies to participate in offshore block auctions in 2026, raising prospects of both imports and investment in exploration. New interest is also emerging in regions beyond traditional African suppliers such as Nigeria and Angola, including Suriname and Namibia.
India’s strategic petroleum reserves form the backbone of its emergency preparedness. The country has about 5.33 million metric tonnes of underground crude storage, which alone can meet roughly 9.5 days of demand. Additional reserves maintained by oil marketing companies at refineries and terminals can supply petrol, diesel and other fuels for about 64.5 days. Combined, these stocks provide a buffer of approximately 74-75 days, ensuring that essential sectors such as transport, agriculture and industry remain functional during global supply disruptions or price shocks.
The main strategic reserve sites are located at Visakhapatnam in Andhra Pradesh, Mangalore and Padur in Karnataka. These facilities store crude oil in underground salt caverns, considered among the safest long-term storage solutions. Large salt formations are hollowed out using a method known as solution mining to create vast cavities capable of holding millions of tonnes of crude. Beyond these reserves, refineries and fuel terminals across the country maintain substantial operational stocks of petrol, diesel and aviation fuel.
India is now working to expand its storage capacity further, with plans for a new reserve at Chandikhol in Odisha and potential expansion at existing sites. The long-term aim is to build reserves sufficient to cover 90 days or more of demand, in line with global energy security standards.
The process of importing crude is managed by both public and private sector companies, including Indian Oil, Bharat Petroleum, Hindustan Petroleum and Reliance Industries. These firms enter into purchase agreements with global producers, with shipments arriving on marine tankers at major ports such as Mumbai, Jamnagar and Visakhapatnam. Payments are typically made in dollars, though some deals allow transactions in rupees. Global crude prices and currency exchange rates directly influence domestic petrol and diesel prices.
Once imported, crude oil is refined within the country. India ranks among the top five refining hubs globally and is the fourth-largest refiner after the United States, China and Russia. The country operates 23 major refineries, including 19 in the public sector, three private facilities and one joint venture. The Jamnagar refinery, operated by Reliance, is the largest in the world. These refineries process crude into petrol, diesel, aviation fuel, kerosene and other products for domestic use and export.
Oil quality varies widely depending on its source. Light crude with lower sulphur content is easier and cheaper to refine, while heavier grades require more complex processing. Crude from the US and Europe often comes at higher cost due to production and transport expenses. Supplies from Russia, Iraq and Saudi Arabia have often been available at discounted rates, making them particularly attractive to Indian buyers in recent years.
Transport remains a largely globalised operation. Nearly 95 per cent of the oil tankers carrying crude to India are privately owned and chartered, mostly by foreign shipping firms, while India maintains only a limited number of its own vessels.
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February 11, 2026, 18:13 IST
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