New Delhi: Indian oil refiners have strengthened their crude oil and liquefied petroleum gas (LPG) procurement strategies to ensure uninterrupted energy supplies despite ongoing disruptions linked to the conflict involving Iran. Industry sources have indicated that refiners have secured sufficient crude oil supplies through at least August, while LPG requirements are covered until mid-July.
India, the world’s third-largest importer and consumer of crude oil, has increased purchases from Abu Dhabi National Oil Company (ADNOC) and other international suppliers in recent weeks. The move comes as geopolitical tensions in the Middle East continue to affect shipping routes and energy trade flows, particularly through the strategically important Strait of Hormuz.
According to industry sources, Indian refiners have been sourcing ADNOC crude and LPG cargoes through ship-to-ship transfers on a free-on-board basis. ADNOC has reportedly been offering crude cargoes from Fujairah storage facilities, Zirku and Das Island terminals, as well as through transfer operations in the Fujairah-Sohar region and Malaysia. Most LPG shipments are being supplied from Sohar.
A refinery source stated that crude availability is currently not a concern and that LPG supplies remain adequately covered for the near term. The assurance comes as refiners continue to diversify procurement sources to reduce dependence on any single region.
State-owned Hindustan Petroleum Corporation Limited (HPCL) has reportedly purchased four million barrels of Murban crude from the United Arab Emirates for August delivery through trading firms Totsa and Mercuria. The cargoes were acquired at a premium of approximately 40 cents per barrel over the July Dated Brent benchmark.
In addition, HPCL recently secured two million barrels of crude from Brazil and West Africa for its Rajasthan refinery. Other major refiners, including Indian Oil Corporation (IOC) and Mangalore Refinery and Petrochemicals Limited (MRPL), have also increased spot market purchases in recent weeks.
Following disruptions to Middle Eastern supplies earlier this year, Indian refiners expanded imports from Latin America and Africa while also sourcing additional crude from Saudi Arabia. The diversified procurement strategy has helped maintain supply stability amid continuing geopolitical uncertainty in global energy markets.
