Page 155 - CW E-Magazine (15-7-2025)

Hydrocarbons

ENERGY SECURITY

Government mulls building three more strategic oil

reserves

The government is said to be con-
sidering setting up three additional stra-
tegic oil reserves to increase its emer-
gency stockpile and enhance energy
security, according to a Reuters report.
State-owned consultancy Engineers
India Ltd. (EIL) is conducting feasibility
studies for the new reserves, according
to L.R. Jain, CEO of Indian Strategic
Petroleum Reserve Ltd. (ISPRL).

Increasing its reserve capacity will
also help India qualify for membership
in the International Energy Agency,
which requires members to maintain
reserves equal to 90 days of oil consump- three new reserves will be a 5.2–5.3 mt three new projects will require approval
tion. At present, India’s total oil storage – facility in salt caverns at Bikaner, from the Union Cabinet after the com-
covering company-owned facilities and Rajasthan, a 1.75-mt site at Mangalore, pletion of feasibility assessments.
oil in transit – can meet about 75 days Karnataka and a storage facility in Bina,
of fuel demand. Madhya Pradesh, whose capacity is yet India has revised its strategic re-
to be determined. serves policy in recent years to allow
India already operates strategic private companies to participate and
reserves in Mangalore, Padur and These will be in addition to a new even trade oil commercially. This is simi-
Visakhapatnam in southern India, 2.5-mt reserve at Padur and a 4-mt lar to models in countries such as Japan
which together can hold around 5.33- facility at Chandikhol in Odisha that have and South Korea, where major oil fi rms
million tonnes (mt) of crude oil. The already been approved. The proposed lease storage space and handle trading.

TRADE TRENDS
Petrol sales rise 6.4% in June; diesel up 1.2%

Petrol sales increased 6.4% year- cooking gas saw a 10.1%
on-year in June, while diesel sales surge during the quarter.
went up 1.2%, according to provisional Summer holidays sup-
data provided by the petroleum and ported petrol sales, while
natural gas ministry. diesel demand appears to
have been affected by the
Aviation turbine fuel (ATF) sales early onset of monsoon.
increased 3.6% year-on-year in June. ATF sales have slowed
The consumption of liquefi ed petroleum this fi nancial year after
gas (LPG), used primarily for cooking, increasing nearly 9% in
surged 10.2%. 2024-25. Diesel accounts
for nearly 40% of the
For the April-June quarter, petrol diesel sales went up 2.5%. Jet fuel total refi ned products consumed in the
sales registered 6.9% growth, while consumption increased 3.9%, and country.

Chemical Weekly July 15, 2025 155

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