Currently, India has a total of 5.33 million tons of crude oil as the strategic oil reserve. 13 % means- around 5 million barrels of crude will be released by the Indian govt. of from its strategic petroleum reserves after consultation with other global energy consumers, i.e. China, South Korea, Japan, and United States. This decision has been taken in a bid to provide relief to all Indian citizens from the rising oil price. It was said by the Minister of State (MOS) for Petroleum and Natural Gas.
The minister also mentioned that the domestic price of crude oil is completely linked with the international benchmarks. He also added that this is also affected by many other factors, i.e supply & demand, recent impact of COVID, geopolitical situations, etc. according to his statement, the linear correlation will not be applicable for this equation but one can only link the price with these factors.
India has a stock of 5.33 million tons which is equal to 9 days requirement and other oil marketing companies have a stock of 64 days, hence the total capacity storage is 74 days.
