What is the strategic reserve controlling the price of petrol and diesel? How does India keep oil hidden between the rocks?
The Government of India has announced that it will release 5 million barrels from its Strategic Petroleum Reserve. It is expected that this may bring down the prices of petrol and diesel in the country.
The Government of India has announced that it will release 5 million barrels from its Strategic Petroleum Reserve. It is expected that this may bring down the prices of petrol and diesel in the country. America has also taken a similar decision before India. Many more countries can take this decision in the coming days.
Strategic reserve has been in discussion since this announcement of India. Let us understand, what is Strategic Reserve? Where are the strategic reserves of India located? How is crude oil stored in these reserves? And can this decision bring relief to your pocket?
Understand in simple language, it is a stock of crude oil to meet the energy needs of the country in case of emergency. The country's energy needs are met out of these reserves when the supply of crude oil is affected due to war or any other reason. Apart from emergencies, these reserves are also used to control oil prices.
India imports 83% of its crude oil from other countries, so to deal with any emergency, India has also kept crude oil in reserve. This reserve is to be used only in emergency situations.
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