India will not participate in the International Energy Agency’s (IEA) proposal to release strategic petroleum reserves to stabilise global oil markets, government sources said on Monday, even as crude prices surge amid the escalating Middle East conflict, reported PTI.
The decision comes as G7 nations consider coordinated releases of emergency oil reserves to calm markets after crude prices climbed close to $120 per barrel, the highest level in about four years.
India, the world’s third-largest oil importer and consumer, currently holds about 5.33 million tonnes of underground strategic petroleum reserves, though the storage is around 80% filled, according to officials.
"The crisis (that led to a rise in prices) is not our creation. Those responsible have to deal with it and create situations to ease (prices)," a government source said, ruling out releasing Indian reserves.
Officials said the reserves maintained by India are intended to be used only during actual disruptions in supply rather than to influence global market prices.
"Ours is a India first policy," the source said, PTI quoted.
India is not a full member of the IEA and therefore does not have a binding obligation to follow the organisation’s calls for coordinated oil stock releases. The country currently participates as an associate member.
Meanwhile, IEA executive director Fatih Birol is expected to discuss the issue with Indian authorities.
India has previously taken part in coordinated releases of emergency oil reserves. In 2021, New Delhi joined a US-led initiative and released about 5 million barrels of oil from its strategic petroleum reserves (SPRs) to help stabilise global energy markets.
Government sources also said India does not plan to curb exports of refined fuels, noting that the country currently has “reasonably” comfortable stocks of petrol, diesel and aviation turbine fuel (ATF).
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