BPCL crude imports from Russia to fall in FY25, to buy 25% of total requirement

The expected cut in imports this year is due to moderation in discount offered by Russia.
The company said it previously received a discount of nearly $8-$10 per barrel on Russian crude oil last year. This year, the discount is expected to be lower, potentially in the range of $3-$4 or $3-$6 per barrel.
The company said it previously received a discount of nearly $8-$10 per barrel on Russian crude oil last year. This year, the discount is expected to be lower, potentially in the range of $3-$4 or $3-$6 per barrel.

NEW DELHI: State-owned Bharat Petroleum Corporation Limited (BPCL) said, in its investors call, it will import 25% of its total crude oil needs from Russia in FY 2024-25. Last fiscal, the company imported a total of around 36 million metric tonnes (MMT) of crude oil, of which nearly 39% came from Russia.

The expected cut in imports this year is due to moderation in discount offered by Russia. The company said it previously received a discount of nearly $8-$10 per barrel on Russian crude oil last year. This year, the discount is expected to be lower, potentially in the range of $3-$4 or $3-$6 per barrel.

“Compared to the 39% supply we received last year, do we expect to import around 25% this time, or perhaps a little lower?” the company said in an investor call for the quarter ending March 2024.

BPCL said the reason for cutting down the discount is now Russian crude is not in the over-supply zone of Russian crude like this year. Therefore, it is expecting moderate discounts only, not a very aggressive discount for Russian crude also.

However, BPCL is said Russian crudes will continue to play a significant role in their throughput (total crude oil processing) in FY 2025-2026. “As of date we are foreseeing we will get the Russian supply, but the only thing is most of the Russian supplies are not on term basis, it is on spot basis.

So, every two months, M-2 only we can plan it, if there is no new geopolitical tensions or there is no new issues, at least we are estimating the supply should continue at the consignment levels,” said BPCL.

Indian oil marketing companies increased its import of Russian crude after Ukraine and Russia war in 2021. This comes after various sanctions imposed by US on Russia crude.

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