Yes, masala pastes should be stored with an oil topping. The oil layer acts as a barrier, preventing air exposure and mold growth, thus extending the paste's shelf life.
Masala pastes are susceptible to spoilage due to their moisture content and the presence of spices that can attract mold. Storing them with a layer of oil on top creates an anaerobic environment, meaning it reduces the amount of oxygen that comes into contact with the paste. This inhibits the growth of mold and bacteria, which require oxygen to thrive. The oil also prevents the paste from drying out and hardening, maintaining its texture and flavor. The type of oil used is important; a neutral-flavored oil like vegetable oil or canola oil is generally preferred so it doesn't overpower the flavor of the masala paste itself. Ensure the oil layer is thick enough to completely cover the surface of the paste.
Before adding the oil topping, ensure your masala paste is cooled completely. Adding oil to a warm paste can trap moisture and potentially create a breeding ground for bacteria, defeating the purpose of the oil barrier.