India Energy Security: Fuel Stocks and Forex Reserves Amid West Asia Tensions

Context: India Energy Security

Amid West Asia tensions and fears of global fuel supply disruption, the Centre said India has adequate fuel stocks and strong forex reserves to manage short-term energy shocks.

Key Data

Crude oil reserves: 60 days
Natural gas reserves: 60 days
LPG rolling stock: 45 days
Forex reserves: around $703 billion

India ranks around 4th globally in forex reserves.
1st: China
2nd: Japan
3rd: Switzerland

India’s Energy Import Dependence

Crude Oil:

  • Imports nearly 85% requirement
  • Largest supplier: Russia

Natural Gas (LNG):

  • Imports around 45%–50%
  • Major supplier: Qatar

LPG:

  • Imports around 55%–60%
  • Major suppliers: Saudi Arabia, Qatar, UAE

Import Cover

Import cover = number of months a country can finance imports using forex reserves if external inflows stop.

Higher import cover reflects stronger external sector stability during crises.

India Energy Security
PYQ – 2018, Ans – D
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