BPCL Slashes Russian Crude Imports for November as Middle East Supplies Turn Cheaper — October 26, 2026

Bharat Petroleum Corporation Limited (BPCL), India’s second-largest state-run oil marketing company, has sharply scaled back its Russian crude oil intake for November delivery, as elevated freight rates and steep premiums made alternative supplies from the Middle East significantly more attractive.

Speaking to analysts following the company’s quarterly earnings review, Vetsa Ramakrishna Gupta, Director of Finance at BPCL, highlighted that Russian cargo procurements were "significantly reduced" for the upcoming month on account of changing trade economics. Middle Eastern grades have emerged as commercially superior options for November, prompting the refiner to increase liftings from traditional suppliers in Saudi Arabia and the United Arab Emirates.

Economics Shift Toward Middle Eastern Barrels

During the July–September quarter, Russian crude accounted for approximately 37% of BPCL’s total crude sourcing basket. However, the economic calculus tilted sharply against Russian barrels due to several factors:

• Escalating Freight and Premium Costs: Russian crude offers for November delivery commanded steep premiums between $10 and $13 per barrel over benchmarks alongside higher shipping costs, substantially eroding the delivered discount that previously made Russian grades attractive.
• Rebound in Middle East Competitiveness: With freight routes significantly shorter and regional producers adjusting official selling prices, barrels from Saudi Arabia and Abu Dhabi offered refiners a more viable landed margin.
• Potential Rebound in December: Discounts could return later in the year, as BPCL noted that premiums for Russian crude have narrowed down to $1 to $2 per barrel for December loading windows, which may prompt a selective increase in purchases next month.

Refinery Runs and Planned Maintenance Downtime

In the July–September quarter, BPCL processed 10.4 million metric tonnes of crude, clocking an operating capacity utilisation of 117% across its network. However, the management cautioned that refinery throughput is poised to moderate over the October–March period due to scheduled plant turnarounds.

Key planned maintenance activities across BPCL facilities include:

• A 30-day scheduled shutdown of key processing units at the Mumbai refinery.
• A 30-to-40-day maintenance turnaround impacting selected units at the Kochi refinery.
• Scheduled maintenance interventions across units at the Bina refinery.

Broader Strategic Developments

Management also disclosed that BPCL plans to dilute an equity stake of at least 30% in its proposed greenfield refinery and petrochemicals project located in Andhra Pradesh to onboard strategic partners and share capital expenditure commitments.

For investors tracking Indian energy counters, BPCL's tactical procurement shifts demonstrate the continued flexibility of domestic refiners to alternate between Russian spot cargoes and Middle Eastern term contracts to preserve gross refining margins (GRMs) against volatile global crack spreads.