Energy Security: Preparation to keep India safe for 90 days. Parliamentary committee told the Center to increase the buffer stock of crude oil.

News India Live, Digital Desk: Amidst global uncertainties and war-like situations, India has now become even more cautious about its energy security. The Parliamentary Standing Committee on Petroleum and Natural Gas Affairs has given a very important suggestion to the Central Government. The committee has recommended that the emergency reserve of crude oil in the country i.e. ‘buffer stock’ should be increased to at least 90 days. What is the situation now and why is there concern? At present, India has about 9-10 days of Strategic Petroleum Reserve (SPR) to meet its oil needs. Moreover, oil refineries have about 64-65 days of stock. The committee believes that this is not enough in view of the Russia-Ukraine war and increasing tensions in the Middle East. If the supply chain is disrupted at the global level, it can be a big problem for India. Why is 90 days of stock necessary? According to the standards of the International Energy Agency (IEA), any country should have oil reserves equal to at least 90 days of net imports. Price control: Having adequate stock will maintain stability in the domestic market even if oil prices rise in the international market. Emergency situation: In case of war or closure of sea routes, the country’s economy and transportation system will be disrupted. Stoppages will be avoided. Strategic Strength: With more storage capacity, India will be able to increase its bargaining power at the global level. Emphasis on creation of new storage capacities. The parliamentary committee has asked the government to accelerate the second and third phase of Strategic Petroleum Reserves (SPR) projects. Plans are underway to increase storage capacity at places like Chandikhol in Odisha and Padur in Karnataka. The committee has also suggested promoting private sector participation and attracting foreign investment. Steps towards energy self-reliance: The committee has emphasized not only on the storage of crude oil but also on the expansion of the gas grid and its coordination with renewable energy. The report said that it is not possible for a country with a fast growing economy like India to completely eliminate oil dependence, but increasing its reserves is the need of the hour.