India ramps up Venezuela oil buys to diversify from Gulf supply, but Russian crude still mainstay

India sharply increased imports of Venezuelan crude in April 2026, with inflows reaching approximately 283 thousand barrels per day (kbd) — a multi-year high...

What Happened

India sharply increased imports of Venezuelan crude in April 2026, with inflows reaching approximately 283 thousand barrels per day (kbd) — a multi-year high — driven by the disruption of Persian Gulf supplies following the Strait of Hormuz crisis.
May 2026 Venezuelan import volumes are projected at 350–400 kbd, as complex refiners such as Reliance Industries, HPCL-Mittal Energy Limited (HMEL), and BPCL ramp up processing of heavier crude grades like Merey.
Russian crude remained the anchor of India's import mix, averaging approximately 1.6 million barrels per day (mbd) in April — representing 35% of total imports — with Indian Oil Corporation (IOC) the single largest buyer at 683 kbd.
India also doubled Brazilian crude imports (from 137 kbd in March to 293 kbd in April) and increased Nigerian sourcing by 85% (from 125 kbd to 231 kbd), reflecting a broader multi-directional diversification away from Middle East barrels.
The Gulf's share of India's crude supply, which stood at approximately 60% through February 2026, had fallen below 35% by April 2026.
LPG supply faced acute stress: imports collapsed from 2.0–2.3 million metric tonnes per month (December 2025 – February 2026) to 0.92 million metric tonnes in April 2026, with refiners partially compensating through a 30% increase in domestic LPG production.

Static Topic Bridges

India's Crude Oil Import Dependence and the Refinery Structure

India is the world's third-largest oil consumer and third-largest oil importer (after China and the United States), importing approximately 85–87% of its crude oil requirements. India's refining capacity is approximately 254 million metric tonnes per annum (MMTPA) as of 2024-25, operated by a mix of public sector undertakings (PSUs — IOC, HPCL, BPCL, MRPL) and private refiners (Reliance Industries, Nayara Energy/formerly Essar Oil). India's refinery configuration significantly shapes import patterns: "complex" refiners with secondary processing units (fluid catalytic crackers, cokers) can process heavier, sour, discounted crudes — enabling the shift to Venezuelan Merey and Russian Urals/ESPO grades.

India's crude import volume: approximately 232 million tonnes (FY2024-25), or ~4.6–4.7 mbd.
Major PSU refiners: Indian Oil Corporation (IOC) — India's largest refiner; Hindustan Petroleum (HPCL); Bharat Petroleum (BPCL); MRPL (a subsidiary of ONGC).
Private refiners: Reliance Industries (Jamnagar — world's largest single refinery complex at ~1.36 mbd capacity); Nayara Energy (Vadinar, Gujarat — ~20 MMTPA).
Venezuela's Merey is a heavy, high-sulphur crude (API gravity ~16°) requiring complex refinery configurations — only available to technically equipped refiners.
Russia's primary export grades to India: Urals (western Russia, Baltic/Black Sea export) and ESPO Blend (eastern Siberia-Pacific pipeline, Kozmino port, Pacific Ocean route).

Connection to this news: India's ability to absorb Venezuelan and Russian crudes at scale depends on its complex refinery infrastructure. The Gulf disruption has accelerated a structural shift that makes India's import basket more geographically diverse but also more dependent on politically sensitive origins.

India's Hydrocarbon Import Policy and the Role of Oil PSUs

India's oil sector is governed primarily by the Petroleum and Natural Gas Regulatory Board Act, 2006 (PNGRB Act), which regulates the midstream and downstream sectors. The upstream sector is overseen by the Directorate General of Hydrocarbons (DGH) under the Ministry of Petroleum and Natural Gas. Crude oil procurement is not centrally directed in India — PSU refiners like IOC and BPCL make independent commercial decisions, though the government influences supply security through the Indian Strategic Petroleum Reserves Limited (ISPRL) and the Petroleum Planning and Analysis Cell (PPAC).

PPAC (Petroleum Planning and Analysis Cell): under the Ministry of Petroleum and Natural Gas; publishes monthly import data, monitors energy security indicators.
ISPRL (Indian Strategic Petroleum Reserves Limited): a special purpose vehicle under MoPNG; manages India's underground SPR at Visakhapatnam (1.33 MMT), Mangaluru (1.50 MMT), and Padur (2.50 MMT) — total 5.33 MMT, covering ~9–10 days of imports.
India's Hydrocarbon Exploration and Licensing Policy (HELP), 2016: replaced NELP (New Exploration Licensing Policy, 1999); introduced revenue sharing model and Open Acreage Licensing (OAL).
India's domestic crude production: approximately 29–30 million tonnes per year (FY2024-25), meeting only ~13–15% of refining requirements — underscoring import dependence.

Connection to this news: The LPG supply collapse illustrates a downstream vulnerability: Gulf-origin LPG (primarily from Qatar and Kuwait) cannot easily be replaced by Venezuela or Russia, exposing a structural gap in India's energy supply chain diversification.

Venezuela's Oil Sector — Sanctions, PDVSA, and Implications for India

Venezuela holds the world's largest proven crude oil reserves (approximately 303 billion barrels as per OPEC data), but production has collapsed from over 3 mbd in the late 1990s to approximately 800–900 kbd by 2024-25, due to mismanagement, underinvestment, and US sanctions on PDVSA (Petróleos de Venezuela, S.A. — the state oil company). The US has periodically eased sanctions to allow third-country purchases — and India has benefited from such waivers — but the sanctions risk remains a constant overhang on sustained supply relationships.

Venezuela: founding member of OPEC (1960), currently active OPEC member.
PDVSA: Venezuela's state-owned oil company, incorporated 1976 following the nationalisation of the petroleum industry; US sanctions on PDVSA imposed from 2019 onwards under Executive Order 13850.
Merey crude: Venezuela's primary heavy crude export grade; API gravity approximately 16°; requires processing by refiners with coking or deep conversion units.
India-Venezuela oil trade route: Venezuelan crude shipped via the Atlantic, around the Cape of Good Hope or through the Panama Canal — significantly longer and more expensive than Gulf route.
The US has conditioned aspects of the India-US trade deal on India reducing Russian oil purchases; Venezuela purchases partially satisfy India's diversification optics without fully substituting Russian volumes.

Connection to this news: India's ramp-up of Venezuelan oil purchases reflects both the Gulf supply emergency and a diplomatic signal to the US that India is reducing Gulf dependence — though analysts characterise Venezuelan supply as a "swing" supplement rather than a structural replacement for Gulf or Russian barrels.

Russia-India Oil Relationship — Price Cap, Discounts, and Geopolitical Dimensions

Following Western sanctions on Russia after February 2022, India became a principal destination for Russian crude diverted from European markets. The G7 and EU's price cap mechanism (set at USD 60/barrel for Russian crude, effective December 5, 2022) restricts Western shipping, insurance, and financing services from facilitating purchases above the cap — but India, China, and other non-G7 nations are not bound by the cap and have continued to purchase Russian crude at market-negotiated discounts, often using non-dollar settlement mechanisms.

G7 oil price cap on Russian crude: USD 60 per barrel (December 5, 2022); periodically reviewed.
Russia's dominant export grades to India: Urals blend (western route) and ESPO Blend (eastern route).
Russia's share of India's crude imports: peaked at ~40% in FY2023-24; approximately 35% in April 2026.
Indian refiners' discount on Russian Urals vs Brent: ranged from USD 10–20/barrel in 2022-23; narrowed to USD 3–7/barrel by 2024-25 as freight and insurance costs rose.
India's position: purchases are "consistent with India's long-standing energy security interests" — India does not endorse the price cap but does not openly challenge it.
Rupee-Ruble settlement: India and Russia have explored non-dollar trade mechanisms; limited by convertibility constraints of the Ruble.

Connection to this news: Russian crude's continued dominance (35% of imports in April 2026) reflects the economic and logistical lock-in that has developed since 2022 — a structural dependency that cannot be rapidly unwound even as India diversifies at the margin toward Venezuela, Brazil, and Nigeria.

Key Facts & Data

India's crude import dependence: ~85–87% of requirements met by imports.
India's total crude imports: ~232 million tonnes (FY2024-25); approximately 4.6–4.7 mbd.
Gulf's share of India's crude supply: ~60% (pre-Hormuz crisis, through February 2026); below 35% by April 2026.
Russian crude share: ~35% of total imports in April 2026; ~1.6 mbd.
Venezuelan crude: ~283 kbd in April 2026 (multi-year high); projected 350–400 kbd in May 2026.
Brazilian crude: doubled to ~293 kbd in April 2026 (from 137 kbd in March 2026).
Nigerian crude: up 85% to ~231 kbd in April 2026 (from 125 kbd in March 2026).
LPG imports: collapsed to 0.92 MMT in April 2026 (from 2.0–2.3 MMT in Dec 2025 – Feb 2026).
Domestic LPG production increase: ~30% through optimised refinery secondary units.
India's SPR capacity: 5.33 MMT (Visakhapatnam, Mangaluru, Padur) — ~9–10 days of imports.
Venezuela's proven crude reserves: ~303 billion barrels (world's largest per OPEC data).
PDVSA: nationalised 1976; US sanctions effective from 2019.
G7 Russia crude price cap: USD 60/barrel (in force since December 5, 2022).