India, South Africa, and several other developing nations are advancing plans to strengthen their emergency fuel reserves following disruptions in the Strait of Hormuz, highlighting the strategic importance of stockpiles held by major economies such as China and the United States. The recent closure of this crucial maritime route, which previously handled about one-fifth of the world’s oil shipments, has underscored vulnerabilities for countries heavily reliant on oil imports.

South Africa is preparing its largest strategic crude oil build-up in decades, aiming to restore government stocks equivalent to approximately 60 days of imports. Meanwhile, India’s largest state-owned oil and gas company, ONGC, has approved an expansion to add about 1.75 million tonnes (roughly 13 million barrels) to a national storage network currently holding 40 million barrels. Together, these measures would increase reserves by an estimated 50 million barrels among emerging economies.

Other major fuel importers across Asia and Africa, including Pakistan and the Philippines, are also initiating plans to build official stockpiles to guard against future supply shocks linked to the ongoing conflict in Iran and related regional tensions. Many developing countries currently maintain limited reserves, often covering only a few days of national demand, reflecting a broader challenge of infrastructure and financial constraints.

Experts emphasize the critical role of reserves in insulating countries from both price volatility and physical supply disruptions. “Countries that import all their oil are very vulnerable not just to price swings but also to product becoming unavailable,” said Nicolas Jaquier, an investment manager at Ninety One. He described stockpiles as essential from a national security perspective but noted that some governments are simultaneously reducing fuel subsidies that have historically moderated consumption.

Despite the significance of recent announcements, analysts caution that the combined increased reserves by India and South Africa would only partially address supply gaps caused by the Hormuz crisis, which has led to daily shortfalls estimated between 10 million and 20 million barrels. Neil Crosby, head of oil research at Sparta Commodities, noted the disparity in scale, saying the current problem outweighs the potential impact of these strategic reserve expansions on global oil prices.

In contrast, wealthier countries have tapped extensively into their strategic petroleum reserves to stabilize markets. The International Energy Agency (IEA) reported that nearly 300 million barrels of oil have been released from a planned 400 million-barrel release since March to address supply tightness. The IEA also mandates that member countries, mostly advanced economies, maintain reserves sufficient to cover at least 90 days of net imports—a benchmark largely out of reach for many developing nations.

China’s substantial strategic and commercial oil reserves, estimated at about 1.3 billion barrels, have also played a key role in market stability, enabling Beijing to reduce oil imports to their lowest levels in a decade this year. However, smaller economies often face additional hurdles, including limited refining capacity to quickly convert stored crude into usable fuel during emergencies.

The intensified efforts by India, South Africa, and other developing countries to build more robust fuel stockpiles reflect growing concerns over energy security amid ongoing geopolitical tensions in critical oil transit regions. While these steps may enhance resilience over the medium term, near-term supply risks remain acute as conflicts continue to affect key shipping routes.