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New Indian Express
2 days ago
- Business
- New Indian Express
Govt has not directed oil companies anything on Russian oil imports: HPCL chairman
The Indian government has neither instructed oil companies to halt nor continue the import of Russian crude oil, instead allowing them the autonomy to make procurement decisions based solely on economic considerations, Hindustan Petroleum Corporation Ltd (HPCL) Chairman Vikas Kaushal said on Friday. Speaking during an investor call, Kaushal emphasised that a complete stoppage of oil imports from Russia would not have any "significant" impact on HPCL's operations. "There is no guidance or direction from the government to either stop or continue importing Russian oil," Kaushal stated. "We are free to make import decisions based purely on commercial merits." Russian crude accounted for just 13.2% of all the crude processed by HPCL into products like petrol and diesel during the April-June quarter of the current fiscal year. The company processed a total of 6.66 million tonne of crude oil during this period. Kaushal clarified that the relatively low share of Russian crude in HPCL's overall feedstock mix was driven entirely by economic factors. "It's not because of any geopolitical reason. It was an economic decision based on what we needed to run in our refineries," he said. Only the Vizag refinery processed Russian crude in Q1, while the Mumbai refinery sourced oil from other regions. Meanwhile, US President Donald Trump announced earlier this week that he would impose an additional 25% tariff on U.S. imports from India, raising the total duty to 50% as a penalty for the country's continued purchases of Russian oil. India remained the largest buyer of Russian crude in July, importing 1.6 million barrels per day. However, reports indicate that India has not placed any orders for Russian oil for August and September, as discounts on Russian crude narrowed to just $2 per barrel.
Time of India
2 days ago
- Business
- Time of India
No instructions from govt to stop or continue buying Russian oil, says HPCL head
New Delhi: The Indian government has neither directed its oil companies to halt nor continue the purchase of Russian oil, instead allowing them the freedom to make procurement decisions purely based on economic considerations, HPCL's chairman said on Friday. Russian crude oil made up for just 13.2 per cent of all the crude that Hindustan Petroleum Corporation Ltd (HPCL) processed into fuels like petrol and diesel in the April-June quarter, and a complete stoppage of oil from Moscow will not have any "significant" impact, HPCL chairman Vikas Kaushal said at an investor call. US President Donald Trump earlier this week announced he would impose an additional 25 per cent tariff on US imports from India -- raising the overall duty to 50 per cent -- as a penalty for the country's continued imports of Russian oil. Since the steep tariffs are likely to hit the USD 27 billion of non-exempt exports that India does to the US, there has been chatter around stopping or curtailing oil imports from Russia. There is "no guidance or direction from the government to either stop or (continue) importing" Russian oil, Kaushal said. "We are free to do" imports based on purely commercial merits, he said. India was the largest importer of Russian crude, purchasing 1.6 million barrels per day in July. However, it has not placed any orders for August and September, mainly because the discounts that initially encouraged Indian refiners to import oil from the Black Sea have decreased to about USD 2 per barrel. With such a minimal price advantage compared to other internationally available oil, Indian refiners did not place any orders for August and September. Oil companies typically secure import contracts about two months in advance, meaning the supplies for August and September were arranged before Trump's August 7 announcement of higher tariffs. India is currently stepping up efforts to diversify its crude import basket further. Kaushal stated that the Russian crude forming just 13.2 per cent of the entire crude intake in HPCL's refineries was purely driven by commercial reasons and not geopolitics. Economics dictated that only the Vizag refinery of HPCL processed Russian crude in Q1 while Mumbai looked at other sources, he said. "It's not because of any geopolitical reason. It was an economic decision based on what we needed to run in our refineries." He went on to add that even in a scenario where all of the Russian crude oil has to be replaced, "it will not have any significant commercial impact". HPCL remains open to buying Russian oil if it becomes competitively priced again, he said, adding that the company would be able to absorb the financial loss for not processing Russian oil. The company processed 6.66 million tonnes of crude oil in the April-June quarter. PTI
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Business Standard
2 days ago
- Business
- Business Standard
No instructions from govt to stop or continue buying Russian oil: HPCL head
The Indian government has neither directed its oil companies to halt nor continue the purchase of Russian oil, instead allowing them the freedom to make procurement decisions purely based on economic considerations, HPCL's chairman said on Friday. Russian crude oil made up for just 13.2 per cent of all the crude that Hindustan Petroleum Corporation Ltd (HPCL) processed into fuels like petrol and diesel in the April-June quarter, and a complete stoppage of oil from Moscow will not have any "significant" impact, HPCL chairman Vikas Kaushal said at an investor call. US President Donald Trump earlier this week announced he would impose an additional 25 per cent tariff on US imports from India -- raising the overall duty to 50 per cent -- as a penalty for the country's continued imports of Russian oil. Since the steep tariffs are likely to hit the USD 27 billion of non-exempt exports that India does to the US, there has been chatter around stopping or curtailing oil imports from Russia. There is "no guidance or direction from the government to either stop or (continue) importing" Russian oil, Kaushal said. "We are free to do" imports based on purely commercial merits, he said. India was the largest importer of Russian crude, purchasing 1.6 million barrels per day in July. However, it has not placed any orders for August and September, mainly because the discounts that initially encouraged Indian refiners to import oil from the Black Sea have decreased to about USD 2 per barrel. With such a minimal price advantage compared to other internationally available oil, Indian refiners did not place any orders for August and September. Oil companies typically secure import contracts about two months in advance, meaning the supplies for August and September were arranged before Trump's August 7 announcement of higher tariffs. India is currently stepping up efforts to diversify its crude import basket further. Kaushal stated that the Russian crude forming just 13.2 per cent of the entire crude intake in HPCL's refineries was purely driven by commercial reasons and not geopolitics. Economics dictated that only the Vizag refinery of HPCL processed Russian crude in Q1 while Mumbai looked at other sources, he said. "It's not because of any geopolitical reason. It was an economic decision based on what we needed to run in our refineries." He went on to add that even in a scenario where all of the Russian crude oil has to be replaced, "it will not have any significant commercial impact". HPCL remains open to buying Russian oil if it becomes competitively priced again, he said, adding that the company would be able to absorb the financial loss for not processing Russian oil. The company processed 6.66 million tonnes of crude oil in the April-June quarter.
Indian Express
2 days ago
- Business
- Indian Express
No govt directive on Russian oil imports, free to scout for alternatives if Moscow's oil becomes unfeasible, says HPCL chairman
Public sector refiner Hindustan Petroleum Corporation (HPCL) has cut down on processing Russian oil as it has lost much of its price advantage over competing crude grades, and not because of geopolitical considerations or any signal from the government, according to the company's chairman and managing director Vikas Kaushal. While HPCL has so far not received any directive from the government on import of Russian crude, the refiner is free to look at alternatives if it were to completely stop buying Russian crude in the future due to any sanctions-related reason, Kaushal said in a post-earnings analyst call. Russian crude's share in crude oil processed by HPCL contracted significantly to 13.2 per cent in the quarter ended June 30, primarily due to lower discounts hitting the competitiveness of Moscow's barrels, according to the HPCL chairman. According to a recent report by Nomura, the implied discount on Russian crude oil for Indian refiners was estimated to have declined to around $2.2 per barrel in 2024-25 from over $12 per barrel in 2022-23. 'It's not that we are not buying Russian crude; those decisions are still open. It's just that whatever is economical will be bought,' Kaushal said in the analyst call. 'We are free to look at alternatives as and when economic situations present (themselves). If we were not to buy Russian crude for any sanctions-related reasons, the impact would not be too significant for us,' he said. The HPCL chairman's comments come amid trade tensions between India and the US, with Indian refiners' hefty imports of Russian crude surfacing as a major irritant for the Donald Trump administration. Earlier this week, Trump announced an additional 25 per cent tariff—over and above the 25 per cent tariff announced last week on Indian goods—as a penalty for India's Russian oil imports. New Delhi has called the targeting of India over the purchase of Russian oil 'unjustified and unreasonable' and said these imports began as its traditional supplies were diverted to Europe, with the US having 'actively encouraged such imports by India for strengthening global energy markets stability'. Indian public sector refiners have paused Russian oil purchases, which had already slowed down in previous weeks, it is learnt. While the recent slowdown in oil imports from Russia is being seen as a signal by New Delhi to Washington, sources in India's refining sector say that it is also due to discounts on Russian crude narrowing considerably. India has stated over the years that as a country that depends on energy imports, it will buy oil from wherever it gets a good deal, as long as the oil is not under sanctions. To be sure, Russian oil is not under sanctions, and is only subject to a price cap imposed by the US and its allies that applies if Western shipping and insurance services are used for transporting the oil. The renewed pressure from the US and other Western powers—pressuring Russia's top trade partners to cut down on imports from the country—are aimed at forcing the Kremlin's hand into ending the Ukraine war. For Trump, who wants the three-year-old Russia-Ukraine war to end within days, this is an opportune time to pressure India over its Russian imports, given the sensitive trade pact negotiations between New Delhi and Washington. When Russia invaded Ukraine in February 2022, Moscow's share in New Delhi's oil imports was less than 2 per cent. With much of the West shunning Russian crude following the invasion, Russia began offering discounts on its oil to willing buyers. Indian refiners were quick to avail the opportunity, leading to Russia—earlier a peripheral supplier of oil to India—emerging as India's biggest source of crude within a matter of months, displacing the traditional West Asian suppliers. Russia now accounts for 35-40 per cent of India's total oil imports by volume. As Europe decided to stop the import of refined petroleum fuels from Russia, Indian refiners increased fuel exports to the continent. Despite the noise from sections of the West against India over the country's hefty purchases of Russian crude, this shift in oil and petroleum product trade had Washington's blessings, as the US wanted energy markets to remain stable and well-supplied, according to various US officials who served in the Joe Biden administration. Sukalp Sharma is a Senior Assistant Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 13 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More
News18
2 days ago
- Business
- News18
No instructions from govt to stop or continue buying Russian oil, says HPCL head
New Delhi, Aug 8 (PTI) The Indian government has neither directed its oil companies to halt nor continue the purchase of Russian oil, instead allowing them the freedom to make procurement decisions purely based on economic considerations, HPCL's chairman said on Friday. Russian crude oil made up for just 13.2 per cent of all the crude that Hindustan Petroleum Corporation Ltd (HPCL) processed into fuels like petrol and diesel in the April-June quarter, and a complete stoppage of oil from Moscow will not have any 'significant" impact, HPCL chairman Vikas Kaushal said at an investor call. US President Donald Trump earlier this week announced he would impose an additional 25 per cent tariff on US imports from India — raising the overall duty to 50 per cent — as a penalty for the country's continued imports of Russian oil. Since the steep tariffs are likely to hit the USD 27 billion of non-exempt exports that India does to the US, there has been chatter around stopping or curtailing oil imports from Russia. There is 'no guidance or direction from the government to either stop or (continue) importing" Russian oil, Kaushal said. 'We are free to do" imports based on purely commercial merits, he said. India was the largest importer of Russian crude, purchasing 1.6 million barrels per day in July. However, it has not placed any orders for August and September, mainly because the discounts that initially encouraged Indian refiners to import oil from the Black Sea have decreased to about USD 2 per barrel. With such a minimal price advantage compared to other internationally available oil, Indian refiners did not place any orders for August and September. Oil companies typically secure import contracts about two months in advance, meaning the supplies for August and September were arranged before Trump's August 7 announcement of higher tariffs. India is currently stepping up efforts to diversify its crude import basket further. Kaushal stated that the Russian crude forming just 13.2 per cent of the entire crude intake in HPCL's refineries was purely driven by commercial reasons and not geopolitics. Economics dictated that only the Vizag refinery of HPCL processed Russian crude in Q1 while Mumbai looked at other sources, he said. 'It's not because of any geopolitical reason. It was an economic decision based on what we needed to run in our refineries." He went on to add that even in a scenario where all of the Russian crude oil has to be replaced, 'it will not have any significant commercial impact". HPCL remains open to buying Russian oil if it becomes competitively priced again, he said, adding that the company would be able to absorb the financial loss for not processing Russian oil. The company processed 6.66 million tonnes of crude oil in the April-June quarter. PTI ANZ ANZ SHW view comments First Published: August 08, 2025, 14:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
