India's inadequate strategic petroleum and gas reserves exposed, leading to vulnerability
The Centre recently hiked retail petroleum product prices, highlighting India's vulnerability due to inadequate strategic petroleum and gas reserves. Despite warnings since 2018 about high crude prices, India's public sector oil marketing companies have been bleeding. The country's import dependence, especially for crude oil, has increased, with reserves only sufficient for 20 days of consumption, compared to China's 900 million barrels. The article criticizes the government's failure to build adequate reserves and diversify sources, making India susceptible to global price shocks and geopolitical events like the Russia-Ukraine war.
Key Points
- India's strategic petroleum and gas reserves are inadequate, making the country vulnerable to global price shocks.
- Public sector oil marketing companies have faced financial strain due to high crude prices and insufficient reserves.
- India's current reserves are only sufficient for about 20 days of consumption, significantly less than China's 900 million barrels.
- The government's failure to build adequate reserves and diversify sources has exposed India to geopolitical risks.
- The recent hike in petroleum product prices underscores the urgency of addressing this vulnerability.
Exam Facts
- The Centre recently hiked retail petroleum product prices.
- India's reserves are sufficient for about 20 days of consumption.
- China's strategic reserves are about 900 million barrels.
- The article mentions the 1973 oil shock.
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