India’s largest state-owned oil refiners have significantly increased crude oil purchases from Africa and the Middle East, buying around six million barrels as part of a broader strategy to reduce reliance on Russian supplies and manage growing geopolitical and trade risks.
According to industry and trade sources, Indian Oil Corporation (IOC) secured approximately six million barrels of crude in recent tenders for delivery in April. The purchases include Angolan Pazflor and Nigerian Agbami grades from trading house Totsa, as well as Nigerian Akpo and Bonny Light grades from Shell. IOC also bought about two million barrels of Upper Zakum crude produced in the United Arab Emirates through trader Mercuria.
The shift comes as Indian refiners have largely avoided Russian crude offers for March and April loadings. Industry participants expect this stance to persist, reflecting a recalibration of India’s crude sourcing strategy after Russian oil came to dominate the country’s import mix in recent years.
“Refiners are not taking March-April Russian crude offers, and are expected to stay away from such trades for longer,” one industry source said, pointing to heightened uncertainty surrounding geopolitical alignments and trade negotiations.
Beyond West Africa and the Gulf, Indian refiners are also expanding purchases from Latin America. Indian Oil and Hindustan Petroleum Corporation Ltd (HPCL) have jointly bought around two million barrels of Venezuelan Merey crude for late April delivery to India’s east coast. Under the deal, IOC will take about 1.5 million barrels, while HPCL will receive 500,000 barrels aboard a single very large crude carrier. The cargo is being supplied by Trafigura.
For HPCL, the transaction marks its first-ever purchase of Venezuelan crude, while IOC has previously imported barrels from the South American producer. Market sources say Venezuelan Merey crude has been trading at discounts of roughly $6.50 to $7 per barrel below ICE Brent, priced against the Dubai benchmark, making it attractive for India’s heavy crude-processing refineries.
The diversification drive comes as New Delhi seeks to strengthen its negotiating position with Washington ahead of a potential framework trade agreement expected to be discussed in the coming weeks. In a recent joint statement, U.S. President Donald Trump said India had committed to stopping direct or indirect imports of Russian oil, although New Delhi has not formally announced a ban.
Analysts say the latest buying spree underscores India’s effort to balance energy security, cost considerations and diplomatic objectives. By broadening its crude supply base across Africa, the Middle East and Latin America, India aims to reduce exposure to any single supplier while maintaining flexibility in an increasingly volatile global energy market.
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