India’s Reliance Industries Ltd said it would consider resuming purchases of Venezuelan crude if sales are formally permitted to non-U.S. buyers, signaling a possible return of the South American producer to India’s import mix.
“We are awaiting clarity on access for Venezuelan oil by non-U.S. buyers and will consider purchasing the oil in a fully compliant manner,” a Reliance spokesperson said in response to questions from Reuters.
State-owned refiners Indian Oil Corporation and Hindustan Petroleum Corporation are also open to buying Venezuelan oil should restrictions be lifted for non-U.S. companies, according to industry sources. Both companies declined to comment officially.
Reliance halted Venezuelan oil imports in March 2025 after U.S. President Donald Trump announced a 25 percent tariff on countries purchasing crude from Venezuela. The company received its final cargo in May last year.
Earlier this week, Caracas and Washington reached an agreement allowing exports of up to $2 billion worth of Venezuelan crude, estimated at 30 to 50 million barrels, to the United States. The deal followed the capture of Venezuelan President Nicolas Maduro by U.S. forces on January 3.
Reliance operates two major refinery complexes in Gujarat with a combined capacity of around 1.4 million barrels per day. These facilities are designed to process heavier and discounted crude grades such as Venezuela’s Merey blend.
“If Venezuelan crude returns to global markets, it is likely to be priced at a discount,” said Sumit Ritola, lead refining analyst at Kpler. “That improves feedstock flexibility and economics for refiners that can handle heavier barrels, even if volumes remain modest.”
A Potential Alternative to Russian Crude
Other Indian refiners, including HPCL-Mittal Energy, Nayara Energy, Mangalore Refinery and Petrochemicals, and IOC, have previously imported Venezuelan oil, according to LSEG trade flow data.
Ritola described Venezuelan crude as a politically acceptable diversification option for India, particularly as scrutiny of Russian oil imports continues.
India has faced sustained pressure from Western countries to reduce purchases of Russian crude following Moscow’s invasion of Ukraine, amid concerns that oil revenues are funding the war. Last year, the United States doubled tariffs on Indian goods to 50 percent, citing India’s high intake of Russian oil.
On Wednesday, a Republican U.S. senator said President Trump had approved legislation aimed at sanctioning countries that continue to do business with Russia.
While several state-run refiners and Nayara Energy are expected to maintain Russian imports, Reliance has said it will not receive Russian crude in January. That move could push India’s Russian oil imports to their lowest level in years.
“Reliance’s pullback from Russian crude shows that refiners can adjust quickly when compliance risks increase,” Ritola said.
