RoydadNaft –  As the ceasefire between India and Pakistan sets in, there is a sense that the Indian government could consider further strengthening of strategic petroleum reserves and contingency mechanisms.

“International crude oil prices are volatile, so every country maintains some reserves — generally up to 120 days. But in India, we still have not reached that level of storage capacity. Hence, we need to build up reserve facilities,” said Hari Nayudu, Economist at National Institute of Public Finance and Policy (NIPFP).

The economist’s remarks come in the backdrop of concerns raised by the government over instances of panic fuel buying during the recent heightened tensions with Pakistan. Long queues were witnessed at fuel pumps, especially across northern India, during the standoff. Prompt intervention by fuel retailers and the government, through assurances of adequate supply, helped ease consumer anxiety and restore normalcy.

“War may increase demand — by panic buying and hoarding. These need to be strictly addressed by ensuring access and uninterrupted supply chains,” Nayudu said.