India’s crude purchases are gradually tilting back to Middle East

Indian state-owned refineries are gradually swinging back to MENA crude supplies as US pressure over Russian oil purchases ramps up.

State-run Bharat Petroleum Corporation Limited (BPCL) has issued one-year tenders for Abu Dhabi’s Murban, Iraqi Basrah, and Oman crude for deliveries stretching to March 2027, a shift back to its traditional sources, Bloomberg reports. This follows a purchase agreement signed with Iraqi suppliers in November 2025 for 70k barrels per day (bpd) through 2026.

Another state-run refiner, Mangalore Refinery and Petrochemicals (MRPL), is looking for alternatives. With Russian volumes off the table, MRPL — which already sources 40% of its needs from the Middle East — is actively scouting for Venezuelan barrels. However, the commercial viability for these purchases remains in question due to high freight rates and low yield from heavy crude. These factors will likely send demand back to reliable heavy crude producers in the Gulf region. MRPL already said it remains committed to Middle East crude, particularly Saudi Aramco barrels, to ensure supply stability amid geopolitical uncertainties.

Driving the news: The latest moves by state refiners are meant to appease the White House as it dangles a 500% tariff threat against countries purchasing Russian oil. Meanwhile, Russian imports appear to be declining — marking a three year low of 1.2 mn bpd in December from 2 mn bpd.

The pivot will be expensive. Replacing the discounted Russian barrels could add up to USD 11 bn to India’s annual import bill. But for Indian refiners, the risk of secondary sanctions and tariff pressure outweighs the benefit of cheaper Russian oil.

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