State-run Bharat Petroleum Corp Ltd (BPCL) expects its imports of Russian crude oil to decline significantly in November as rising freight costs and diminishing discounts render Middle Eastern grades more commercially viable, a senior company official confirmed on Monday.
Speaking to analysts following the company’s quarterly earnings release, BPCL Head of Finance Vetsa Ramakrishna Gupta noted that Middle Eastern crude sourcing had already picked up in September and is projected to rise further through October and November.
In the July–September quarter, Russian oil accounted for roughly 37 per cent of BPCL’s total crude sourcing mix. However, competitive pressure from Chinese buyers alongside escalating shipping costs has squeezed the economic advantage of Russian cargoes, narrowing December premiums to around $1–$2 a barrel, down sharply from $12–$13 in October.
Beyond crude sourcing adjustments, BPCL warned that overall refinery runs could moderate during the third and fourth quarters. The refiner has scheduled a 30-day unit shutdown at its Mumbai refinery and a 30-to-40-day maintenance turnaround for select units at its Kochi plant.
Additionally, BPCL revealed plans to dilute at least a 30 per cent stake in its proposed refinery and petrochemical project in Andhra Pradesh as it evaluates long-term capital investments.
