Strategic fuel reserves alone won't secure India's energy future

India's proposed strategic fuel programme aims to significantly expand the country's storage capacity for crude oil, liquefied natural gas (LNG), and liquefied petroleum gas (LPG). The initiative is designed to create a buffer against supply disruptions and price volatility in global energy markets.

However, experts caution that merely building large reserves will not automatically translate into energy security. The effectiveness of the system hinges on India's ability to move fuel from storage facilities to end-users through a reliable network of ships, pipelines, and distribution channels.

A critical gap lies in the absence of clear guidelines governing key operational aspects. Questions around ownership of the stored fuel, the financing model for such a large-scale project, and the rules for replenishing reserves after they are drawn down remain unresolved.

Without a well-defined framework for these logistical and regulatory elements, the strategic reserves could become static assets rather than a dynamic tool for managing energy supply. The success of the programme will depend on integrating storage with the broader energy infrastructure and establishing transparent protocols for its use.