Bharat Petroleum Corporation Limited (BPCL) has awarded one-year contracts for Iraq’s Basrah Medium and Omani crude to global trader Trafigura, while also seeking spot cargoes of UAE’s Murban crude. The shift is part of a broader move by Indian refiners to reduce dependence on Russian oil, following sanctions on Rosneft and Lukoil that have forced New Delhi to halt imports from those companies. With Russia now supplying India at a three-year low, refiners are scrambling to secure alternative sources, including the Middle East, the Americas, and West Africa.
India’s decision to pivot away from Russian oil comes amid tense trade negotiations with the United States, and reflects a cautious effort to avoid escalating diplomatic friction. Indian refiners have stated they will comply with U.S. sanctions, prompting a search for competitively priced crude elsewhere. State-run Mangalore Refinery and Petrochemicals Limited (MRPL) has also joined the hunt for alternatives, exploring potential Venezuelan crude purchases if terms and freight rates prove favorable. MRPL currently meets around 40% of its crude needs with Middle Eastern oil and continues to buy spot cargoes while refining domestic output.
As the country adjusts its energy supply chain, the broader industry is watching closely to see whether India can sustain fuel production and price stability while diversifying away from Russian oil amid geopolitical pressure and market volatility.
