It is feared that Iran might attempt to disrupt the Strait of Hormuz amid the ongoing conflict with Israel and the US. This could result in supply shortages and a surge in oil prices, and impact India, the world’s top crude importer, like other buyers. Amid fears of a wider conflict following Israeli and US strikes on Iran, gas and crude prices have already soared. However, India is not exactly losing sleep over the fluctuations.
As Petroleum and Natural Gas Minister Hardeep Singh Puri noted, India’s diversified crude supply sources and the fact that a significant portion does not pass through the Strait of Hormuz offer a level of cushion. What Puri didn’t refer to is that India’s comfort is further bolstered by its strategic crude oil reserves, stored in underground rock caverns at three key locations.
India maintains several million metric tonnes of crude oil as part of its Strategic Petroleum Reserves (SPR) in rock caves or caverns in Andhra Pradesh, Karnataka, and Tamil Nadu.