Why has BPCL shifted from term contracts to spot crude purchases, and what is the primary geographic reason cited?

BPCL has shifted to spot crude purchases because most Middle Eastern suppliers—except Saudi Aramco—have been unable to deliver contracted volumes due to disruptions caused by the Iran conflict, specifically the effective closure of the Strait of Hormuz, a critical waterway carrying about a fifth of global oil flows.

What percentage of BPCL’s crude requirements is now being met by Russian crude, and how does this reflect its current supply strategy?

BPCL is relying on Russian crude to meet about 45% of its requirements, reflecting its urgent pivot toward alternative, readily available sources amid the breakdown of traditional Middle Eastern term contracts and the need to keep refineries operating at peak capacity.

BPCL Turns to Spot Crude as Iran Conflict Disrupts Term Supplies

May 19, 2026

India’s Bharat Petroleum Corp. shifted to spot crude purchases amid Iran conflict disruptions, relying on Russian barrels as Middle Eastern term contracts fail. The refiner missed Q4 earnings estimates while selling fuel below cost due to soaring import expenses.

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