India will expand strategic oil reserves and build new refineries to secure supply chains after the Iran war triggered price spikes, Prime Minister Narendra Modi said. Oil Minister Hardeep Singh Puri emphasized preparation over worry, noting that 747.81 billion rupees in losses on subsidized fuel sales during the April-June quarter demonstrated the need for greater energy security buffers.

Crude prices have since retreated following the U.S.-Iran interim peace deal, potentially encouraging nations to replenish strategic reserves depleted during the supply shock. India's diversified supplier relationships and diplomatic ties helped navigate the turmoil without passing sharp retail fuel costs to consumers, though state-owned refiners absorbed significant financial pain.

Modi will inaugurate a new 180,000-barrel-a-day greenfield refinery in Rajasthan on Saturday, marking India's push to become a major global refining hub. The facility will increase oil imports by another 150,000 barrels daily, contributing to a projected 20% rise in refining capacity to 6.2 million barrels per day by 2030.

Puri highlighted that the United States hasn't built a greenfield refinery in 50 years while Europe loses refining capacity, positioning India to influence global hydrocarbon trade flows. This strategic shift reflects India's ambition to capitalize on Western refinery retrenchment while securing its energy future.