NEW DELHI: India has no plans to join an initiative led by the International Energy Agency (IEA) to release strategic oil reserves, a government source said, despite rising global oil prices triggered by supply concerns linked to the conflict involving Iran.
The decision comes as finance ministers from the Group of Seven (G7) are expected to meet to discuss a possible coordinated release of oil reserves aimed at stabilising global energy markets.
Oil prices surged above $119 per barrel on Monday, the highest level since mid-2022, after several major producers cut supplies and fears grew over potential shipping disruptions due to the ongoing U.S.–Israeli conflict with Iran.
India, an associate member of the IEA, currently sees no need to tap its strategic reserves, with officials stating that the country maintains comfortable fuel stock levels, including gasoline, gasoil and jet fuel. Authorities also indicated that there are no plans to restrict fuel exports.
In 2021, New Delhi had joined a coordinated effort led by the United States, releasing 5 million barrels of oil from its Strategic Petroleum Reserves (SPR) to help stabilise markets.
India maintains SPR facilities at three locations with a combined capacity of 5.33 million metric tons. These storage facilities—partly leased to Abu Dhabi National Oil Company (ADNOC)—currently hold around 4 million tons of crude oil, according to another government source.
Officials added that India has not exercised its first right of refusal to purchase oil stored by ADNOC in these facilities.
Meanwhile, Indian refiners have recently purchased millions of barrels of Russian crude that were stranded at sea after United States authorities granted New Delhi a 30-day waiver from sanctions to buy Russian oil cargoes loaded on vessels as of March 5.
The country’s industrial sector, including fertiliser manufacturers, has also been facing natural gas shortages. To address the situation, India is seeking additional supplies of liquefied petroleum gas (LPG) from the United States and Canada, which is widely used as cooking fuel.
In response to the tightening supply situation, the government has raised cooking gas prices for the first time in a year and instructed domestic refiners to maximise LPG production to meet growing demand.
By Reuters
