India’s exposure to global oil market volatility has reached critical levels, with imported crude now accounting for more than 90% of the nation's total consumption.
A new report by EY highlights the structural vulnerability, noting that the country's strategic petroleum reserves are currently sufficient to cover only five days of domestic demand.
The consultancy argues that this thin buffer leaves the economy highly susceptible to external supply shocks, particularly given the ongoing instability in key producing regions.
The findings underscore a growing disconnect between India's energy security posture and its rapidly expanding import dependency.
While the government has previously urged citizens to curb fuel usage and limit overseas travel to mitigate the impact of Middle East tensions, EY suggests that behavioral adjustments alone are insufficient.
Instead, the firm recommends a concerted effort to build out physical storage infrastructure and diversify supply chains to reduce reliance on any single geographic source.