BPCL Moves to Secure Long-Term Middle East Crude Supplies

State-owned refiner Bharat Petroleum Corporation Limited (BPCL) is looking to secure long-term crude oil supplies from the Middle East. This move suggests India is slowly reducing its dependence on discounted Russian oil and returning to traditional suppliers.

BPCL has issued tenders for 3 crude grades, Abu Dhabi’s Murban, Iraq’s Basrah and Oman crude. These supplies are planned for delivery from April 2026 to March 2027, according to traders familiar with the matter.

Shift Away from Russian Oil

India’s oil buying strategy has been closely watched in recent months due to US sanctions on major Russian oil producers and continued pressure from Washington. These developments have made it harder for Indian refiners to rely heavily on Russian crude.

Unlike spot market purchases, which are short-term and price-driven, long-term supply contracts show a stronger and more stable commitment to specific suppliers.

BPCL had already signed a supply agreement with Iraq last year for 2026 deliveries, and the new tenders indicate higher Middle East sourcing than in recent years.

Government Monitoring Oil Imports

The Indian government is also keeping a close watch on oil imports. Recently, the oil ministry asked refiners to share weekly data on crude imports from Russia and the US, following directions from the Prime Minister’s Office.

Other Refiners Return to Traditional Suppliers

Other major refiners are also increasing Middle East purchases. Reliance Industries has been active in buying Middle Eastern crude in the spot market, while Mangalore Refinery continues to rely heavily on Saudi Aramco for stable supplies.

Indian Oil Corporation, the country’s largest refiner, has also stepped up Middle East sourcing through both spot tenders and long-term contracts.

Russian Crude Imports Decline

India’s Russian crude imports, which once crossed 2 million barrels per day, are now expected to stay between 1.2 and 1.4 million barrels per day in January. Refinery officials say the final number could be even lower.

Also Read: Best Long-Term Stocks in Jan 2026 – 5yr CAGR Basis!

BPCL Share Price Movement

Bharat Petroleum Corporation share price (NSE: BPCL) was trading at ₹349.95 on the NSE at 10:31 am on January 21, down 1.48% or ₹5.25 from the previous close. The stock opened at ₹354, touched an intraday high of ₹358.75 and slipped to a low of ₹349.70 during the session. Over the past year, the stock has moved between a 52-week high of ₹388.15 and a 52-week low of ₹234.01. BPCL offers a dividend yield of 4.05%, with a quarterly dividend amount of ₹3.54 per share.

Conclusion

BPCL’s move to lock in long-term Middle East crude supplies reflects India’s broader strategy to ensure stable oil sourcing amid geopolitical risks. As sanctions and global pressure rise, Indian refiners are prioritising supply security over short-term discounts.

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