A medium-term plan to expand India’s emergency fuel availability to cover up to three months of demand is under consideration with the government, a senior official said.  This proposal is part of a larger strategy in the works to reassess the country’s energy security framework following recent geopolitical disruptions and volatility in global crude markets. India imports nearly 89 percent of its oil needs, making it highly vulnerable to global supply shocks and swings in crude prices. India imimported $240.7 billion worth of crude oil, gold, vegetable oils and fertilisers in 2025–26, equivalent to 31.1 percent of the country’s total import bill of $775 billion. The largest component was crude petroleum, with imports worth $134.7 billion.

The proposal may involve asking public sector oil companies to build additional crude inventories over time, with the plan expected to be taken up after the current geopolitical situation stabilises, the official said. The move is aimed at reducing India’s vulnerability to supply disruptions and sudden spikes in global oil prices.

Public sector undertakings such as Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation may be asked to maintain larger crude stockpiles as part of a coordinated energy security strategy, he added.

India currently maintains emergency oil cover through strategic reserves and inventories held by refiners and oil marketing companies. The country stores strategic crude through Indian Strategic Petroleum Reserve Limited (ISPRL), which has facilities with a total capacity of 5.33 million metric tonnes at Visakhapatnam, Mangaluru and Padur.

India imports more than 85 percent of its crude oil requirement, making it among the world’s most import-dependent major economies. Any disruption in shipping routes, geopolitical conflict or sharp movement in international oil prices can quickly affect inflation, fuel costs and the country’s import bill.

Sources said the proposal is being examined as part of a broader effort to strengthen India’s preparedness against external shocks after recent geopolitical tensions exposed vulnerabilities in global energy supply chains and triggered sharp swings in crude prices.

The renewed focus on reserves comes as policymakers seek to shield the economy from recurring disruptions, including those linked to the Russia-Ukraine war and tensions in West Asia, which have periodically raised concerns over supply bottlenecks.

No final decision has been taken on the scale or timeline of the proposed expansion, sources said, adding that any move would be calibrated after assessing market conditions and storage requirements.