New Delhi:A parliamentary committee has recommended that the government increase the country’s crude oil reserves to maintain a buffer stock sufficient for 90 days, aligning with international energy security standards. The suggestion comes amid concerns over global fuel supply disruptions triggered by the ongoing conflict involving Iran.
In its latest report on budgetary demands for the petroleum and natural gas sector for the financial year 2026 to 2027, the committee emphasised the need to strengthen India’s strategic petroleum reserves. It noted that expanding oil storage capacity would help the country better manage potential supply shocks and maintain stability in fuel availability during global crises.
To achieve the recommended target, the committee advised the government to explore the construction of additional underground oil storage caverns in regions where geological conditions allow such infrastructure. Expanding these facilities would increase the country’s ability to store crude oil for extended periods and reduce vulnerability to sudden disruptions in global supply chains.
The panel also highlighted the need to accelerate the expansion of piped natural gas connections across the country. With a national target of providing more than 12 crore PNG connections by 2034, the committee observed that the current number remains significantly lower than the projected goal. It suggested prioritising the rollout of PNG connections through the City Gas Distribution network to speed up access to cleaner cooking fuel.
In addition, the committee raised concerns about low refill rates among rural households receiving subsidised cooking gas under the Pradhan Mantri Ujjwala Yojana. It recommended that authorities examine the possibility of providing higher subsidies in regions where refill usage remains particularly low.
The panel stressed that making LPG more affordable and easily available to existing beneficiaries, especially in rural and economically weaker communities, should remain a priority.
The report also pointed to India’s rapidly rising energy demand. As the world’s third largest energy consumer, the country’s primary energy requirement is expected to nearly double by 2050. Demand is projected to grow from about 22 million barrels of oil equivalent per day in 2024 to approximately 43.6 million barrels per day by mid century, highlighting the urgent need for long term planning in the energy sector.
