CAG Flags Underutilisation of India's Strategic Petroleum Reserves

The Comptroller and Auditor General of India (CAG) has pointed out that the country's strategic petroleum reserves (SPRs) are not being used as much as they should be.

These reserves are meant to help in case of emergencies or to be sold for commercial purposes.

The reserves are stored in three places: Visakhapatnam, Mangalore, and Padur, with a total capacity of 5.33 million tonnes.

However, as of March 2024, only about 2.91 million tonnes were filled, leaving 27% of the capacity unused.

The CAG also noted that the trading of crude oil, which was supposed to start by January 2022, has not begun yet.

This delay means the reserves are not generating the expected income, and some storage spaces remain empty.