After years of restricted commerce, state-owned refiners IOC and HPCL of India have acquired 2 million barrels of Venezuelan crude oil in a major import deal, signalling a fresh flow of oil into the Indian market.
Industry insiders said the crude cargo will arrive in the second part of April 2026 after being bought through an international trading company. One very large crude carrier (VLCC) will carry the cargo. While Indian Oil has operated processing facilities on the east coast for crude oil from Venezuela in the past, this is the first time HPCL has purchased crude oil from that country. Given the current climate of unpredictable oil prices, changing global supply chains, and geopolitical realignments, the purchase is indicative of India’s increasing desire to diversify its crude oil suppliers. The updated refineries in India are tailor-made to get more value out of complicated oil blends; thus, they work well with heavy crude grades like Merey.
Refineries seeking to control expenses without sacrificing refinery efficiency should consider Venezuelan crude, according to industry analysts, because of its competitive pricing. As a result of legislative and legal shifts that permit regulated overseas sales through licensed channels, Venezuelan oil exports have been progressively making a comeback to international markets. The robust demand growth and refinery compatibility have made Asian refiners, especially those in India, significant buyers.
In an effort to increase energy security and decrease reliance on any one region, Indian refiners are increasingly looking outside of the conventional supply chain, as seen in the IOC-HPCL contract. Securing varied, cost-effective crude supplies is of utmost importance to India, the world’s third-largest oil importer. According to analysts, these kinds of partnerships allow Indian refiners to keep their sourcing options open as they adapt to changing global energy dynamics.
Given the impending completion of refinery expansions and the anticipated steady rise in fuel consumption, India’s oil procurement plan may see a greater reliance on strategic imports in the months to come.
