78 Days of Oil Left: Is India’s Oil Crisis Already Here? 78 Days of Oil Left: Is India’s Oil Crisis Already Here?

Key Takeaways 

• A parliamentary committee quizzed Oil Ministry officials regarding the fuel shortage and queues at fuel pumps. According to the officials, India’s crude oil reserves can last for 78 days because of the closing of the Strait of Hormuz. 
• The war in West Asia began on February 28, 2026. Since then, 13 Indian ships remain stranded in the region. The IEA said this was the biggest disruption of oil supply ever recorded in global history.

India Has 78 Days of Crude Oil But Fuel Queues Tell Another Story

The Indian Parliamentary Standing Committee on Transport, Tourism and Culture convened today to discuss the ongoing effects of the West Asia conflict on India’s maritime sector. 

The opposition members slammed the Union government on the matter for delaying the measures to curb the problem. They asked what measures the government is taking while the war doesn't seem to end anytime soon.

Common Citizens of India Are Suffering the Most Because of the Situation

Fuel disruptions have already started causing difficulties for people. Shortages of LPG are being reported in Gujarat, Maharashtra, and Kerala states. The rationing of petrol at fuel pumps causes delays and uncertainty for common people, delivery personnel, and small firms.

There are more reasons to be worried about. According to officials from the Fertiliser Ministry, the government managed to procure 80 lakh tonnes of fertilizers from alternative sources. It corresponds to the current demand of 78 lakh tonnes. 

However, increased fertiliser prices worldwide will add more costs to farmers before Kharif season arrives.

What Do Experts Think, and How It Can Be Solved?

Sumit Pokharna, Vice President of Kotak Securities, explained the situation, “India is especially vulnerable, since it is highly dependent on this transit route, with 50-55% of its crude oil and LNG imports using the route. 

India’s Strategic Petroleum Reserve covers just 8-9 days’ worth of demand. With the disruption set to drag on for a longer period of time, the risk of supply problems will quickly become severe.”

On the international level, the situation is as bad. In their report, IEA mentioned this as the “largest supply disruption in the history of the global oil market” with nearly 20 million barrels per day of crude and products affected by the disruption. 

Robin Brooks and Ben Harris, two Brookings Institution economists, have stated that the deficit of supply will gradually accumulate in upcoming months as temporary buffers are being consumed. 

In order to solve the problem, analysts believe India needs to focus on fast expansion of its strategic reserves. They point out that to expand its Strategic Petroleum Reserve up to 30 days of imports, India would need to spend approximately $4-5 billion on building additional capacity. 

Conclusion