Archive · 20 Aug 2025
House Panel Urges Investment in Oil Storage Capacity
Imagine the country needs a lot of oil, like a big car needing fuel.
Right now, we have storage tanks for this oil, but not enough.
A group of people in charge of these things wants to make sure we have more oil stored up, in case we need it.
They're asking the government to give money to companies that store oil so they can build more tanks.
They want these companies to build extra storage near where they make the oil and to build the tanks faster.
This will help make sure we have enough oil, which is important for the country's economy.
House panel urges financial support for state-run oil firms for storage.
Current crude oil storage capacity is 5.33 million tonnes across three locations.
The committee wants to increase strategic storage capacity, aiming for 15-20 additional days.
Existing reserves are below the IEA's recommended 90 days of inventory.
Phase II projects at Orissa and Rajasthan need faster execution.
- Who
- The Standing Committee on Petroleum and Natural Gas.
- What
- A House panel has recommended providing financial support to state-run oil companies to increase strategic oil storage capacity.
- When
- The report was recently released.
- Where
- The strategic storage is located across the country.
- Why
- To increase strategic storage capacity and meet rising domestic demand.
- Existing Storage Capacity
- 5.33 million tonnes
- Storage Locations
- Vishakhapatnam, Mangalore, Padur
- IEA Recommendation
- 90 days inventory
- Commercial and Strategic Reserves
- 72-74 days of crude inventory
- Demand FY25
- 239.2 million tonnes
- Demand FY26 Projected
- 252.9 million tonnes