Vetsa Ramakrishna Gupta, the company’s head of finance, confirmed the shift during a quarterly earnings call, noting that the economic advantage of Russian barrels has evaporated under the weight of rising premiums and logistics expenses. While Russian crude premiums hit $13 per barrel earlier this year, they have recently cooled to between $1 and $2 for December shipments, keeping the door open for a potential rebound in purchases late in the year.
BPCL Shifts Away from Russian Crude as Shipping Costs Surge
High freight costs and shrinking discounts are forcing Bharat Petroleum Corporation Limited to scale back its reliance on Russian oil. The Indian state refiner, which sourced 37% of its supplies from Russia between July and September, now finds Middle Eastern grades significantly more competitive for its November intake.
This pivot mirrors a broader trend across India’s refining sector, which has seen a marked return to Middle Eastern sources. Imports from the region surged to 2.8 million barrels per day in September, a 32% increase from the previous month. As China competes aggressively for Russian supply, Indian refiners are increasingly prioritizing the logistical efficiency and pricing stability offered by Gulf suppliers, effectively shortening supply chains and stabilizing their input costs.
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