HPCL Resumes Russian Crude Oil Purchases After Three-Month Pause, sources say

New Delhi:  India’s state-owned energy major Hindustan Petroleum Corporation Limited (HPCL) has reportedly resumed purchases of Russian crude oil after a pause of nearly three months, signaling a potential shift in the country’s crude sourcing strategy.

According to industry sources familiar with the development, the refiner has booked two cargoes of Russian crude oil that are expected to reach Indian ports later this month. The shipments are being transported through Aframax-class tankers, which are typically used for medium-haul crude deliveries.

Orders Placed Ahead of Geopolitical Developments

Sources indicated that the procurement orders were placed before the recent geopolitical escalation involving strikes by the United States and Israel on Iran on February 28. Global oil markets have remained sensitive to such developments, often affecting crude supply routes, prices, and trading flows.

So far, Hindustan Petroleum Corporation Limited has not issued an official statement regarding the renewed purchases or the earlier pause in sourcing Russian oil.

Russian Oil Share Had Declined Earlier

India’s intake of Russian crude had slowed earlier this year. Industry data suggests that imports from Russia dropped to around 1.1 million barrels per day in January, marking the lowest level since November 2022.

During that period, Russia’s share in India’s total crude oil imports also declined to approximately 21.2%, reflecting adjustments in procurement by Indian refiners amid evolving global trade conditions.

Russian Crude May Be Regaining Ground

However, market participants indicate that the share of Russian oil in India’s import mix likely recovered in February, potentially climbing back to around 30%. Competitive pricing and consistent supply availability have continued to make Russian crude attractive to Indian refiners.

India’s Energy Security Strategy

India remains heavily dependent on imported crude oil to meet its growing energy demand. Since 2022, discounted Russian crude has played an important role in helping Indian refiners optimize costs and maintain stable fuel supplies.

Any procurement move by major refiners like Hindustan Petroleum Corporation Limited is closely tracked by global oil markets, as it can influence regional crude trade patterns and pricing dynamics.

Disclaimer: The information in this article is based on industry sources and publicly available reports; official confirmation from Hindustan Petroleum Corporation Limited may vary.