Government Urges Refiners to Explore US, Venezuela Crude Imports Amid Russia Shift!

The Union government has reportedly asked state-run refiners such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) to consider increasing crude oil purchases from the United States and Venezuela. The move follows statements from the United States that India would halt crude imports from Russia as part of a broader trade understanding. Refinery sources indicated that while procuring crude through spot tenders, greater preference may be given to US grades. A similar advisory has been conveyed regarding Venezuelan crude supplies.

However, no formal announcement has been issued by the Indian government. Experts note that American crude typically has lower sulphur content, while many Indian refineries are configured to process medium-grade crude, raising technical considerations. In addition, transportation costs from the US may be higher compared to supplies from West Africa or Kazakhstan. Reports suggest that Indian refiners recently imported around 4 million barrels of crude from Venezuela as part of efforts to diversify supply sources and strengthen energy security.