Hindustan Petroleum Corporation Limited (HPCL) has resumed purchases of Russian crude oil after a pause of about three months, according to industry sources, signalling a shift in India’s oil procurement strategy amid global supply uncertainties.
The state-run refiner has reportedly booked two Aframax tanker cargoes of Russian crude, which are expected to arrive later this month. The oil was purchased from a trader at a discount of about $13 per barrel compared to Brent crude prices, making the cargoes financially attractive for the company.
Sources said the order for the shipments was placed before the United States and Israel launched strikes on Iran on February 28, an escalation that has disrupted energy markets and raised concerns about supply stability in the region.
India’s imports of Russian crude had declined earlier this year. In January, purchases dropped to about 1.1 million barrels per day, the lowest level since November 2022, reducing Russia’s share of India’s oil imports to roughly 21.2%.
However, industry estimates suggest that Russian oil’s share in India’s import mix could rebound to around 30%, as refiners take advantage of discounted cargoes and seek reliable supplies amid global market volatility.
India remains one of the world’s largest crude importers, and discounted Russian barrels have played a major role in helping refiners manage costs since global energy markets were reshaped after the Ukraine war and subsequent sanctions on Moscow.
