Crude oil supertanker docked at an industrial port with large storage tanks at sunset.
India is facing escalating vulnerability due to its heavy reliance on imported crude oil, which now accounts for over 90% of its consumption, according to a recent report by EY. The consulting firm strongly advises the nation to bolster its strategic crude oil reserves, which are currently insufficient to cover more than five days of demand.
The EY report emphasizes the need for a comprehensive strategy encompassing both the acquisition and release of these strategic reserves. This proactive approach is deemed crucial to mitigate risks associated with supply disruptions and price volatility in the global oil market. As India continues its economic growth trajectory, ensuring energy security through diversified sourcing and robust buffer stocks becomes increasingly paramount.
About the Author
