Bread, water, clothing and shelter are considered as basic human beings. I.e. energy
In the beginning of civilization, humans have created fire from stone rubbing but now human's has created thermal energy, solar energy and nuclear energy.
But if we talk about the Indian condition in terms of petroleum energy; then i would say that
Today, India has imported 83% of crude oil of its requirement which constitutes 25% of total Indian import bill. The oil ministry's technical arm, the oil ministry's technical arm, said that the import bill of crude oil is estimated to increase by 42% to $ 88 billion in 2017-18 to $ 125 billion in 2018-19, considering the Indian basket crude oil price of $ 77.88 / bbl and $ / Rs exchange rate of 72.22 for the balance part of the year
In the present scenario the concern of the central government is the fluctuation in the price of crude oil in the international market. Therefore, there is a dire need for India to make petroleum reserves to ensure the country's energy security and avoidance of price fluctuation.
Why India Need Strategic Petroleum Reserves?
India still needs to import 83% crude oil of its requirement which is the import bill of india which further widens the Current Account Deficit (CAD) of the country.
The fluctuations in the price of the crude oil in the international market is an environment of uncertainty in the country. So in this way the country is dependent on the oil importing countries i.e. Gulf countries which does not suit to a sovereign country like India
It is known that there is always a political upheaval in the Gulf countries, which can create similar conditions of our country So The government of India is building strategic petroleum reserves in the country.
It is known that the current petroleum reserves of India are sufficient to meet just 13 days in oil requirement of the country. But this is not enough to tackle any unpredicted event in the international crude market. So India needs to have petroleum reserves of 90 days In order to ensure energy security for 90 days, India needs to build additional petroleum reserves of 13.32 metric tons.
