Underground unlined storage caverns utilize the principle of groundwater pressure to confine various products like crude oil and liquefied petroleum gas (LPG). The introduction of water curtain galleries and boreholes around the cavern allows to keep groundwater pressure higher than the stored product pressure, which is known as the principle of hydraulic confinement. Assessment of seepage for underground caverns is essential both for maintaining the stability of the structure as well as working out the mechanical pump’s capacities during the operation phase. Thus, striking a balance between excessive seepage and project functionality is essential for the successful construction and operation of underground caverns. This balance requires a comprehensive understanding of the geological conditions, careful planning, and a willingness to adapt to unforeseen geological challenges. This paper explores how permeable features around the excavated structures can affect seepage assessment for rock caverns. In this study, different cases with varying permeabilities were analyzed to ascertain seepage and the minimum hydraulic gradient achieved around storage caverns. This study investigates the seepage assessment under two distinct pressure conditions: atmospheric pressure and product pressure. The outcomes of the study emphasize the importance of different geological elements having varying permeabilities (obtained during investigations) for overall seepage estimation in caverns.