'India needs to augment its strategic crude oil reserves': EY warns as import dependence crosses 90% in FY26

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EY warns that India's dependence on imported crude oil has crossed 90%, raising significant strategic risks. The consultancy recommends augmenting the country's strategic reserves, which currently cover just five days of consumption, to mitigate vulnerabilities from decreasing domestic production and increasing fuel consumption.

India's dependency on imported crude oil has exceeded 90%, creating a significant risk according to EY's findings. The consultancy emphasizes the urgent need for enhancing strategic oil reserves, which presently last just five days compared to China's extensive reserves. This is essential as domestic production wanes and fuel consumption rises, making India vulnerable to global supply disruptions and geopolitical tensions. A thorough reserve strategy is strongly advised.