India's Major Refiners Diversify Oil Sources Following Russian Supply Cuts

Post by : Bianca Suleiman

In a strategic move reflecting India's cautious transition in energy procurement, two prominent state-owned refiners have together secured 5 million barrels of crude oil from international spot markets to reduce their dependence on Russian supplies.

As per industry sources, Hindustan Petroleum Corporation Limited (HPCL) has procured 2 million barrels each of U.S. West Texas Intermediate (WTI) and Abu Dhabi’s Murban crude, with expected delivery dates set for January. Concurrently, Mangalore Refinery and Petrochemicals Limited (MRPL) has clinched a deal for 1 million barrels of Basra Medium crude, slated for delivery from January 1-7.

While details regarding sellers and pricing have not been released, this development emphasizes a growing practice among Indian refiners to mitigate risks associated with geopolitical uncertainties.

As the world’s third-largest oil importer, India is actively exploring alternatives following the U.S. sanctions imposed on Russian energy giants Rosneft and Lukoil, which have applied increased pressure on Moscow amid the ongoing conflict in Ukraine.

Recently, MRPL reportedly halted its purchases of Russian oil due to escalating financial and logistical challenges, while HPCL has similarly reduced its intake of Russian crude in recent months.

The latest acquisitions from the spot market signify a broader strategy by Indian refiners to ensure supply stability through diversified sourcing — aiming to balance energy security with evolving global diplomatic pressures.