Bharat Petroleum Corporation Ltd (BPCL) is looking to secure more crude from alternative sources such as the Middle East and the US, as American President Donald Trump threatens tariffs on buyers of Russian oil, a senior company executive told Moneycontrol.
The state-run oil marketing firm sources around 30 percent of its crude imports from Russia. The share of Russian oil in BPCL’s kitty was bound to decline, the official who spoke on condition of anonymity said.
“There is enough oil in the Middle East and we also have ties with the US,” the official said, adding the company needs to adapt to the evolving geopolitical situation.
Queries sent to BPCL remain unanswered at the time of publishing of this article.
Trump recently threatened secondary sanctions on Russian oil buyers if Moscow failed to end the war with Ukraine.
The removal of Russian crude from the global energy market could have serious repercussions for the global economy, experts have told Moneycontrol.
“If such (secondary) sanctions are put in place, crude oil prices would rise. It would have an inflationary impact on all commodities, and probably result in global recession,” said Prashant Vasisht, VP and co-head, corporate ratings, ICRA.
Russia is the world’s third-largest crude producer, accounting for approximately 11 percent of global supplies.
India meets over 85 percent of its oil needs through imports.
As Trump tariffs wreck markets and threaten the global economy, India is pinning hopes on lower oil prices to keep the growth momentum going.
India’s gross domestic product is expected to grow at least 6.5 percent in FY26, as global oil prices are likely to remain below $70 a barrel, compensating for a potential slowdown in exports due to the US’ reciprocal tariffs, a senior government official said.
Early on April 7, crude dropped to a nearly four-year low on concerns about a slowdown in demand due to an intensifying trade war between the US and China.
The global benchmark Brent dropped almost 4 percent to $63.21 a barrel, while West Texas Intermediate was at $59.79.
Russian oil dependency
Indian oil companies, including the state-run OMCs, ramped up Russian supplies since the beginning of the Ukraine war as Moscow, hit by western sanctions, offered discounted oil.
From sourcing 0.2 percent of oil from Moscow in 2022, India now buys around 30 percent of its crude from Russia.
India’s crude oil import from Moscow reached an eight-month high in March despite US sanctions on Russian oil entities. The US on January 10 imposed new sanctions on Russian oil entities, including oil producers Gazprom Neft and Surgutneftegaz, as well as around 180 tankers shipping Russian oil.
India’s imports of Russian crude surged to approximately 1.9 million barrels per day (bpd) in March, an increase of 480 thousand bpd month-on-month and 300 thousand bpd year-on-year, data from commodity market analytics firm Kpler showed.
India imported 1.47 million barrels of crude oil from Russia in February.
Despite higher supplies of Russian oil, India has been expanding its oil portfolio amid geopolitical crises and rapidly evolving global trade dynamics.
India purchases crude from 40 countries, compared to only 27 suppliers in 2007, petroleum and natural gas minister Hardeep Singh Puri earlier told Moneycontrol.
India’s energy import strategy was dependent on discounts offered by the suppliers, as the country looked to buy the cheapest oil available in the market, the minister had said.
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