Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL), collectively purchased at least twenty-two million barrels of non-Russian crude oil for delivery in September and October 2025.
This marks a notable shift in procurement strategy following U.S. pressure on India to reduce its reliance on Russian oil. Indian state refiners, which had largely stayed away from the spot market since 2022, had emerged as key buyers of discounted Russian crude after Russia’s invasion of Ukraine. However, they halted Russian purchases in late July, reportedly in response to diplomatic pressure from U.S. President Donald Trump.
IOCL Buys Crude from U.S., Brazil, and Libya
In its latest tender, IOCL secured five million barrels of delivered crude, including:
*Two million barrels of U.S. Mars crude
*Two million barrels of Brazilian Sepia and Sururu grades
*One million barrels of Libyan Sarir and Mesla crude
According to market sources, BP sold the Mars crude cargo at a premium of $1.5–$2 per barrel over September Dubai quotes. The Libyan crude was sourced from European trader Petraco, while Totsa, the trading arm of TotalEnergies, supplied the Brazilian cargo. Pricing for the Libyan and Brazilian deals was not disclosed.
Earlier Tender: IOCL Buys Eight Million Barrels
This follows IOCL’s earlier purchase of eight million barrels of September delivery crude from a variety of sources including the Middle East, United States, Canada, and Nigeria, through recent tenders.
BPCL Procures Nine Million Barrels via Direct Negotiations
India’s second-largest state refiner, BPCL, has also finalized deals to buy nine million barrels of crude for September delivery through direct negotiations, a source familiar with the matter confirmed.
The purchase breakdown includes:
*One million barrels of Angola’s Girassol crude
*One million barrels of U.S. Mars crude
*Three million barrels of Abu Dhabi’s Murban crude
*Two million barrels of Nigerian grades
Arbitrage Supports Atlantic Basin Crude Flow to Asia
Traders noted that arbitrage economics have recently improved for shipping crude from the Atlantic Basin to Asia, making such deals more attractive for Indian refiners. This development has further supported the pivot toward non-Russian, diversified crude sources.
A Strategic Realignment in Energy Sourcing
With these latest purchases, India’s state refiners are clearly repositioning themselves to diversify their crude supply base, mitigate geopolitical risks, and adapt to shifting global trade dynamics. As reported by msn.com, the move away from Russian crude—at least for now—reflects both external diplomatic influences and economic opportunities in the global energy market.
