Taking advantage of low prices in major oil-producing centres in Saudi Arabia and UAE, India has filled up its strategic crude oil reserves to meet its energy needs in times of emergency and saved a neat $685.11 million in the process.
It bought crude oil at an average price of $19 per barrel to fill its reserves in April and May when prices reached an all-time low while the US oil touched negative price levels in futures market.
The state-funded reserves are meant to tide over short-term supply disruptions and will take care of India’s oil needs for 9.5 days.
The country was already holding half of its total 5.33 million tonnes oil reserves capacity when the government decided to take advantage of the low crude prices.
India’s three petroleum reserve caverns at Visakhapatnam (1.33MT), Mangaluru (1.5MT) and Padur (2.5MT), managed by India Strategic Petroleum Reserves Ltd (ISPRL), are now full.
Another 6.5MT facility is coming up at Padur in Karnataka, and Chandikhole in Jajpur.