- The Indian government has requested that state-owned refineries including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited should increase their crude oil imports from the United States and Venezuela.
- The request was made after the United States issued statements about India's Russian oil purchases which occurred under a trade agreement. Refinery sources reported that the government instructed them to prioritize American crude grades when acquiring oil through spot market tenders. The same recommendation has been made for Venezuelan crude oil.
No Official Confirmation from India
- US President Donald Trump stated that India had agreed to stop buying Russian oil. Indian authorities have not made any official announcement confirming this position.
- India has maintained that energy security remains its main priority. The country will continue to purchase oil according to its national requirements and the available resources.
Technical and Cost Considerations
- Indian refineries cannot process American and Venezuelan crude oil because of their technical processing limitations. Most American crude grades contain low levels of sulfur. In contrast to American crude oil most Indian refineries use medium-grade crude oil as their primary processing feedstock. This difference may affect refining efficiency.
- The United States will incur higher transportation expenses when it brings in oil from the United States. The costs of oil transportation will decrease when the country acquires oil from West Africa and Kazakhstan.
- The United States is also focusing on selling Venezuelan crude oil reserves. Indian Oil and Bharat Petroleum and Hindustan Petroleum have imported approximately 4 million barrels of Venezuelan crude oil according to reports.
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