Key facts
- India and South Africa are expanding their strategic petroleum reserves.
- India's new reserve in Mangalore will add 1.75 million metric tons, with further government projects adding 6.5 million metric tons.
- South Africa aims to build reserves equal to 60 days of national demand, eventually targeting 90 days, comprising crude oil and refined fuels.
- The expansion of reserves is a response to global energy crises and supply disruptions, particularly those linked to the Iran war.
- IEA members previously released 400 million barrels from reserves to mitigate price spikes and supply shocks.
Asian nations, including India and South Africa, are moving to expand their strategic petroleum reserves in response to ongoing global energy crises and supply disruptions exacerbated by the Iran war. Earlier this year, International Energy Agency (IEA) members coordinated a record release of 400 million barrels of oil to stabilize markets. India, which imports over 80% of its oil, is undertaking a significant expansion of its reserves, with plans for a new 1.75 million metric ton facility in Mangalore and further underground caverns. These additions aim to more than double the government's strategic reserves, complementing existing industry inventories. South Africa is also proposing a substantial increase in its strategic oil reserves, aiming for 60 to 90 days of national demand, to mitigate its reliance on imported fuels due to a decline in domestic refining capacity. The proposed South African plan divides responsibility between the state-owned SANPC and private sector fuel distributors.