Business News | BPCL Explores New Crude Sources Amid Threat to Russian Oil Supplies, Hormuz Uncertainty: CMD
Get latest articles and stories on Business at LatestLY. A possible disruption to Russian oil supplies, coupled with continued pressure around the Strait of Hormuz, could pose a "huge challenge" for Indian oil companies to secure crude and meet domestic fuel demand, Bharat Petroleum Corporation Ltd (BPCL) Chairman and Managing Director Sanjay Khanna said on Thursday.
New Delhi [India], August 27 (ANI): A possible disruption to Russian oil supplies, coupled with continued pressure around the Strait of Hormuz, could pose a "huge challenge" for Indian oil companies to secure crude and meet domestic fuel demand, Bharat Petroleum Corporation Ltd (BPCL) Chairman and Managing Director Sanjay Khanna said on Thursday.
Khanna said oil companies are currently procuring a significant share of their crude from Russia, making any disruption to these supplies a major challenge at a time when the geopolitical situation around the Strait of Hormuz remains uncertain.
"Today, all the companies are procuring in the range of 35 to 45 per cent Russian oil and, you know, making a ban on that quantity and with the state of Hormuz under pressure, definitely it will be a huge challenge for oil companies to get the crude and cater to the national demand," Khanna said during BPCL's Post AGM Virtual Press Conference.
His comments come amid growing uncertainty over India's Russian crude purchases following moves in the US to tighten sanctions on buyers of Russian energy.
Also Read | Derek O'Brien Falls Down Stairs During TMC-KMC Confrontation at AITC Office (Video).
The US Senate in early August passed the Russia Sanctions Bill, named after late Senator Lindsey Graham, which could impose tariffs of up to 100 per cent on the top five countries, including India and China, that purchase Russian crude oil and natural gas. Such measures could put additional pressure on Indian refiners to diversify their crude sourcing.
Khanna, however, said BPCL is currently assessing the situation rather than making any long-term assumptions, given the rapidly changing geopolitical environment.
"As I told earlier, it is a very uncertain situation. Nobody knows how it will unfold next week," he said.
BPCL is using the uncertainty to explore alternative sources of crude, with the company looking at supplies from different geographies. Khanna said the company was "going with the flow as of now" while using the time to explore "every possible geography" and look for crude from newer sources.
On the immediate supply position, Khanna said BPCL's crude and LPG supplies are currently in place, supported by diversification in sourcing. However, he cautioned that the situation could change depending on how geopolitical tensions develop.
"As on today when I'm talking to you with our diversification in the various sources of supply, I can say that we are at safe place only," he said, adding that the country would continue to receive petroleum products from BPCL.
BPCL had also expanded its sourcing options in recent months, including purchases from countries such as Venezuela and Angola, as Indian refiners sought to diversify supplies amid geopolitical disruptions.
The company recorded consolidated capital expenditure of Rs 21,372 crore during FY 2025-26, as it invested in its core businesses and new growth areas. BPCL operates refineries in Mumbai, Kochi and Bina and has businesses spanning fuel marketing, LPG, aviation, lubricants, natural gas, upstream exploration and clean energy.
State-run refiner Bharat Petroleum Corporation Ltd. (BPCL) reported a net loss for the June quarter owing to higher crude oil prices during the April-June period at the height of the first phase of the US-Iran war
The company had reported a net loss of Rs 3,962 crore in the June quarter, compared with a net profit of Rs 3,191 crore in the March quarter, while revenue rose 27.5 per cent sequentially to Rs 1.51 lakh crore. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)