India's BPCL Expects to Reduce Russian Crude Procurement in November

en.Wedoany.com Reported - On October 26, India's Bharat Petroleum Corporation Limited (BPCL) stated during its quarterly earnings conference call that, affected by rising crude oil transportation costs and declining competitiveness of Russian crude oil quotations, the company expects to further reduce Russian crude oil procurement in November and instead increase crude oil supply from the Middle East. From July to September 2026, Russian crude oil accounted for approximately 37% of the company's total crude oil procurement. The company's finance chief stated that Middle Eastern crude oil currently has a more advantageous overall procurement cost.

Bharat Petroleum Finance Chief Vetsa Ramakrishna Gupta stated at the earnings conference that Russian crude oil cargo procurement for November has been significantly reduced, primarily due to rising shipping costs, which have made the landed cost of Russian crude oil higher than some alternative Middle Eastern grades. The company's crude oil procurement from the Middle East has increased compared with the first quarter of fiscal year 2026, and supply from the region is expected to continue rising in October and November.

Crude oil procurement prices have also adjusted. Bharat Petroleum disclosed that the premium for Russian crude oil October cargoes was approximately $12 to $13 per barrel, while the quoted premium for December cargoes has narrowed to $1 to $2 per barrel. The company continues to adjust its procurement mix based on procurement quotations for crude oil from different origins, transportation costs, and refinery processing requirements.

Refinery operation plans are being adjusted accordingly. Bharat Petroleum plans to schedule partial unit shutdowns at the Mumbai refinery for approximately 30 days and implement planned maintenance at partial units of the Kochi refinery for 30 to 40 days. The company expects these maintenance arrangements may affect crude oil processing volumes in the following two quarters. The maintenance at both refineries is part of scheduled equipment maintenance work and is carried out separately from the November crude oil procurement structure adjustment.