Home / Business and Economy / BPCL Cuts Russian Crude Amid Soaring Freight Costs
BPCL Cuts Russian Crude Amid Soaring Freight Costs
26 Oct
Summary
- BPCL is reducing Russian crude purchases due to higher freight expenses.
- Middle Eastern oil supplies are now more commercially appealing to BPCL.
- The company is advancing its Andhra Pradesh refinery project.
Bharat Petroleum Corporation Ltd (BPCL) is scaling back its procurement of Russian crude oil for November, a decision driven by substantially higher freight costs that have eroded the price benefits of these supplies. Vetsa Ramakrishna Gupta, Director (Finance), indicated that while full volumes were initially expected, Russian cargoes have been significantly reduced for the upcoming month.
In contrast, crude oil sourced from the Middle East has emerged as a more commercially attractive alternative for BPCL. This shift reflects the volatile market conditions, where freight and insurance expenses have become critical factors in procurement economics. The company has been actively diversifying its crude sources to ensure refinery operations remain stable despite geopolitical impacts on shipping routes.
BPCL is also moving forward with its significant Andhra Pradesh refinery and petrochemical complex project. The company expects to present this development for a final investment decision at its board meeting in the coming weeks, pending financing and regulatory clearances. This project aims for a capacity of 10 million tonne per year with substantial petrochemical intensity.
