Why has BPCL increased its spot crude oil purchases, and what impact has the Iran-related conflict had on its supply strategy?

BPCL has increased spot crude oil purchases 'because of all the uncertainty' arising from the U.S.-Israeli conflict with Iran, which disrupted Middle East supplies and led to force majeure declarations by some Gulf suppliers; this forced BPCL to ramp up spot buying to maintain refinery operations at 115% capacity, deviating from its original plan to source 55% of 2026/27 crude needs via annual contracts—mainly from Middle Eastern producers—while the rest would come from spot markets.

What is BPCL's current reliance on Russian crude, and how have pricing dynamics for Russian oil changed recently?

BPCL meets 40%–45% of its crude needs with Russian oil bought largely in the spot market under U.S. sanctions waivers, and discounts on Russian crude have narrowed sharply—to $5–$6 per barrel over dated Brent on a delivered basis—from $10–$12 earlier, according to BPCL’s finance director Vetsa Ramakrishna Gupta.

India's BPCL Reviewing Oil Imports Daily, Spot Buying More Amid Iran War, Chairman Says

May 19, 2026

India's state-run refiner BPCL is increasing spot crude purchases and recalibrating import strategies due to Middle East supply disruptions from the Iran conflict. The company reported a 42.6% rise in Q4 profit despite operational losses on fuel sales.

reuters

2026-05-19

India's BPCL Reviewing Oil Imports Daily, Spot Buying More Amid Iran War, Chairman Says

India's BPCL Reviewing Oil Imports Daily, Spot Buying More Amid Iran War, Chairman Says

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