BPCL Navigates Russian Oil Supply Disruptions, Maintains Sufficient Cargoes and Processes 24% Russian Crude in March Quarter

Bharat Petroleum Corporation Ltd (BPCL) has confirmed that it is currently securing sufficient cargoes of Russian oil, despite recent volatility caused by international sanctions and logistical challenges. In the March quarter, BPCL processed 24% of its crude oil from Russian sources, reflecting a notable adjustment from higher levels earlier in the year.

 

The company’s Director of Finance, Vetsa Ramakrishna Gupta, acknowledged that while Russian oil accounted for 34-35% of BPCL’s processed crude at the start of the financial year, this share dropped to 20% in March due to a temporary shortage of available cargoes. The decline was attributed to US-led sanctions targeting Russian oil producers and shipping entities, which complicated both supply and insurance arrangements for Indian refiners. However, BPCL has managed to restore a significant portion of Russian shipments and expects supplies to normalize in the coming months.

 

To mitigate the impact of these disruptions, BPCL has diversified its sourcing strategy, issuing tenders for alternative grades such as Abu Dhabi’s Murban and exploring additional imports from the Middle East, United States, and Brazil. The company remains confident in its ability to maintain a stable crude supply, even as discounts on Russian oil have narrowed and refining margins remain under pressure.

 

Source: Business Standard