India’s strategic crude oil reserves will be full by mid-May, petroleum miniser Dharmendra Pradhan said, giving a clear indication that the country has taken advantage of the slump in global crude prices.

He also hinted at bringing in a new gas policy as well as launching a gas exchange very soon as part of reforms to promote greater use of the environment-friendly fuel.

Speaking in the latest edition of the CERAWeek Conversations series, he said, “Oil prices should give some space to the producer countries. It should be profitable for them; it should be viable for them.”

“India has 5.3 million tonnes of strategic storage capacity. By mid-May, it will be full. Moreover, our companies have 7 million tonnes of floating oil in their contracts. We have booked them, we have purchased them,” Pradhan said.

India has an existing storage capacity of 5.3 million tonnes (mt) at Visakhapatnam (1.33mt), Mangalore (1.5 mt) and Padur (2.5mt) which were built in the first phase. These are operational and can support 9.5 days of net imports.

In addition, the NDA government has approved the construction of 6.5mt of strategic reserves at Chandikhol (4mt) in Odisha and Padur (2.5 mt) in Karnataka.

“We have nearly 38mt of product and crude oil storage facilities. This is around 18 per cent of our annual requirement of energy. This is the maximum capacity we could hold and we are holding that,” Pradhan said.