State-owned Bharat Petroleum’s sister firms – Indian Oil (IOC) and Hindustan Petroleum (HPCL) – are also exploring possibilities to enter into term agreement with Russia for imports of crude oil.
On Wednesday, a source confirmed BPCL’s plan to enter into a term contract with Russia, not on government’s direction, but considering the cost advantage that the Russian crude can offer now.
While both IOC and HPCL declined to comment on the matter, a source aware of the development said, “Indian oil companies have never had term contract with Russia for imports of crude. Whatever quantity is procured from Russia is from the spot market. However, new avenues for term can always be looked at.”
The lion’s share of India’s import of crude oil is from the Middle East on term contract. India is the third largest importer of crude oil in the world.