India Holds 53 Lakh MT Oil Reserve: PM Modi Tells Lok Sabha

Prime Minister Narendra Modi on Monday addressed rising fears of a wider conflict in West Asia, telling the Lok Sabha that India is prepared to withstand any oil supply shocks triggered by war-like conditions, including a possible disruption at the Strait of Hormuz.

War fears and global oil lifeline at risk

As tensions escalate across West Asia, the Strait of Hormuz-one of the world's most critical energy corridors-has emerged as a flashpoint. A significant share of global crude oil, natural gas and fertiliser shipments passes through this narrow channel, making it highly vulnerable during military conflict or blockade scenarios.

Narendra Modi warned that any escalation in the region could directly impact global fuel supply chains and trigger volatility in oil prices. Despite these risks, Narendra Modi assured Parliament that India has built sufficient safeguards to navigate potential disruptions.

India prepares for oil shock amid conflict

Highlighting the country's war-time preparedness in the energy sector, Narendra Modi said India has developed a strong buffer through its strategic petroleum reserves. The country currently holds 53 lakh metric tonnes of crude oil in storage, designed specifically to cushion against supply shocks caused by geopolitical crises or conflict in key producing regions.

Narendra Modi stressed that over the past decade, India has actively strengthened its energy security framework anticipating precisely such scenarios of instability and war.

Diversifying oil sources to counter geopolitical risks

Narendra Modi pointed out that India has reduced its vulnerability to conflict-driven supply disruptions by expanding its energy import network. The country, which earlier relied on 27 suppliers, now sources oil and gas from 41 countries.

This diversification, Narendra Modi explained, ensures that even if war or tensions disrupt supplies from one region-particularly West Asia-India can rely on alternative partners to maintain steady inflows.

Domestic demand and LPG security during crisis

With war concerns potentially affecting fuel availability, Narendra Modi underlined that protecting household energy needs remains a top priority. India imports around 60 per cent of its LPG requirements, making it sensitive to global supply disruptions.

However, Narendra Modi assured that contingency planning and supply coordination with multiple nations are in place to ensure uninterrupted access, especially for domestic consumers.

Stronger refining and supply chain resilience

Narendra Modi also highlighted the expansion of India's refining capacity, which enhances the country's ability to process crude from diverse sources. Combined with constant engagement with global producers, this allows India to respond quickly to supply disruptions caused by war or geopolitical instability.

India on alert as war reshapes energy landscape

The remarks by Narendra Modi come at a time when global markets are on edge over the possibility of a broader conflict in West Asia. With the Strait of Hormuz under threat, energy-importing nations face the risk of supply shocks and sharp price swings.