Finance
India's HPCL resumes Russian oil purchases, sources say
Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: March 5, 2026
Quick Summary
Hindustan Petroleum (HPCL) has resumed purchasing Russian crude after a roughly three‑month pause, securing two aframax cargoes at about a $13 per barrel discount to dated Brent for arrival later in March. India’s Russian crude import share had plunged to around 21–22% in January but may have risen
India's HPCL Resumes Russian Oil Purchases After Three-Month Pause
HPCL's Recent Russian Oil Transactions and Market Impact
By Nidhi Verma
Resumption of Russian Oil Purchases
NEW DELHI, March 5 (Reuters) - India's state-run Hindustan Petroleum Corp has resumed purchase of Russian oil after a gap of three months, buying two cargoes for arrival later this month, two sources familiar with the matter said.
Details of the Recent Transactions
The refiner placed an order for two aframax tankers carrying Russian oil before the U.S. and Israel launched strikes on Iran on February 28, the sources said.
Pricing and Supplier Information
HPCL purchased the oil from a trader at a discount of around $13 per barrel to dated Brent on a delivered basis, the sources said.
HPCL's Previous Stance and Market Context
HPCL did not immediately respond to a request for comment and has not commented previously on why it stopped buying Russian oil.
Trends in India's Russian Oil Imports
India's imports of Russian crude fell to about 1.1 million barrels per day in January, the lowest since November 2022, as New Delhi sought relief from U.S. tariffs, pushing Moscow’s share of overall oil imports down to 21.2%, industry data showed.
Potential Rebound in Russian Oil Share
However, a source said on Wednesday that the share of Russian oil could climbed back to around 30% in February.
(Reporting by Nidhi Verma. Editing by Mark Potter)
Key Takeaways
- •HPCL restarted Russian oil buys in March after halting since January, reflecting renewed access to discounted barrels (~$13/bbl below Brent) as geopolitical tensions evolved.
- •India’s exposure to Russian crude dipped sharply — to a multi‑year low of ~1.16 mbpd in January (≈21 % of imports) — driven by U.S. tariffs, but began rebounding in February.
- •The move underscores India’s balancing act: managing energy security via opportunistic Russian purchases amid global trade pressure and shifting supply dynamics.
Frequently Asked Questions about India's HPCL resumes Russian oil purchases, sources say
1Why did HPCL resume Russian oil purchases?
HPCL resumed Russian oil purchases after a three-month gap, placing orders for two cargoes amid changing market conditions.
2At what discount did HPCL purchase Russian oil?
HPCL bought Russian oil at a discount of around $13 per barrel to dated Brent on a delivered basis.
3How did India's Russian crude imports change recently?
India's imports of Russian crude dropped to about 1.1 million barrels per day in January, the lowest since November 2022, but could rebound to 30% share in February.
4How many Russian oil cargoes did HPCL order recently?
HPCL placed orders for two aframax tankers carrying Russian oil for arrival later in March.
5Did HPCL comment on why it paused Russian oil purchases?
HPCL did not respond to a request for comment and has not previously explained the pause in Russian oil purchases.
