BPCL shifts crude sourcing towards Middle East as Russian oil loses price edge

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Published - October 26, 2026 10:03 pm IST - NEW DELHI

Bharat Petroleum Corporation Ltd (BPCL) tapped more into Middle Eastern crude as Russian oil lost its price advantage and also due to rising freight costs, with the shift becoming more pronounced in November, Vetsa Ramakrishna Gupta, Director (Finance), told analysts during a post-results call on Monday.

“Our spot crude share remained at around 67% in the second quarter, while Russian grade accounted for approximately 37% of our total crude procurement, both broadly in line with the previous quarter,” Mr.

Gupta said, adding that the company increased purchases from the Middle East as supplies from the region improved.

Russia accounted for 37% of BPCL’s crude basket in the September quarter, followed by Saudi Arabia at 19%, Abu Dhabi at 17%, the U.S. at 9% and Oman at 6%.

The remaining supplies came from countries contributing 1-4% each.

As of September-end, BPCL held about 22 days of crude inventory, with sourcing requirements tied up through December.

Mr.

Gupta said the share of Russian crude in October was expected to remain “more or less the same”, although procurement volumes would be lower for November.

“October, our requirement from Russia slightly came down but in the month of November, the cargoes from Russia significantly reduced due to [reduced] commercial viability [compared to that from Middle East], mainly the increase in the freight,” he said, adding that the company did not receive attractive offers for Russian crude in November.

Russian crude was available at a premium of $12-$13 per barrel over benchmark prices in October.

The premium has narrowed to $1-$2 per barrel for December cargoes, Mr.

Gupta said, although freight costs remain high.

“Maybe today, Russian cargo is preferable than a Middle Eastern cargo for December month because November [procurement] we have already concluded,” he said.

BPCL also diversified its liquefied petroleum gas (LPG) sourcing during the quarter.

Supplies from the Arab Gulf improved, while the US accounted for about 48% of LPG imports in the September quarter.

Softening Saudi Contract Prices (Saudi CP), the benchmark for LPG pricing, helped reduce under-recoveries to an average ₹290 per cylinder in the September quarter from ₹507 in the June quarter.

Under-recoveries are expected to be ₹245 per cylinder in October and are expected to rise to ₹328 in November, Mr.

Gupta said.

BPCL currently holds 32 days of LPG inventory, including supplies in transit.

The company has also diversified liquefied natural gas (LNG) procurement by increasing spot purchases from the US, Oman and West Africa.

oil and gas - downstream activities / economy, business and finance / energy resources / oil and gas - upstream activities / prices

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