Due to the ongoing conflict in the Middle East, there have been disruptions in international oil and gas supplies; As a result, India may import around 10–12 million barrels of crude oil from Venezuela in South America in April. This would be the highest volume recorded in the last six years, according to data from commodity market analytics firm Kpler. The data also shows that April will be the first month since May last year when Venezuelan crude oil ships will arrive at Indian ports.
However, these barrels represent only a small part of India’s total crude oil imports. Nevertheless, these are expected to provide some relief to the country and strengthen its strategy to diversify its sources of crude oil. India meets more than 88 percent of its oil needs through imports and processes more than 5 million barrels of crude oil daily. More than 40 percent of these imports come from West Asia via the Strait of Hormuz—a route that has been almost completely closed to shipping since early March.
India’s oil supply remains secure
However, it is worth noting that the Venezuelan oil ships coming to India were probably purchased even before the conflict in West Asia started. This shows the significant benefits of diversifying sources of crude oil supply in times of global crisis. Over the past few years, India has been importing oil from more than 41 countries; This diversification has reduced its dependence on West Asia and ensured that the country has adequate reserves of crude oil, petrol and diesel.
Sumit Ritolia, a manager at Kpler, says Indian refiners are already actively diversifying their crude sources—especially given the uncertainties surrounding the Strait of Hormuz. The ships arriving in April are not just a temporary measure, but an integral part of a long-term strategy that signals a competitive edge in the global energy market. Venezuelan oil boosts India’s refining sector
In 2019, Reliance Industries (RIL) was a major buyer of Venezuelan oil; However, imports were halted due to US sanctions. After these restrictions were eased in October 2023, RIL and other Indian refiners started importing again. Venezuela’s heavy crude oil helps in the production of distillates such as diesel and jet fuel, strengthening India’s distillate production capacity.
In the current geopolitical situation, importing oil from Venezuela diversifies the sources of crude oil and increases the production capacity of Indian refineries. RIL, Nayara Energy and several government refineries process Venezuelan heavy crude. Refineries of HPCL-Mittal Energy and Indian Oil also process it, although in limited quantities. As a result, India’s capacity to process crude oil is continuously increasing.