Crude oil sourcing presently volatile; procuring more on landed basis: HPCL Chief
Hindustan Petroleum Corporation Limited (HPCL) is shifting its crude oil procurement strategy toward a landed basis due to high market volatility. The company is navigating significant fluctuations in freight costs and crude premiums to manage its refining margins.
Why it matters
Changes in procurement strategies by major state-owned oil companies impact energy costs and supply chain stability in the Indian market.
Crude oil sourcing presently volatile; procuring more on landed basis: HPCL Chief left A view of the HPCL headquarters. File The Hindu The Hindu https://th-i.thgim.com/public/incoming/c4vr78/article71617441.ece/alternates/FREE_1200/image%201.png Saptaparno Ghosh _11608 Vikas Kaushal, Chairman and Managing Director (CMD) informed the state-owned OMC is procuring more on landed basis than on FOB basis and term contracts Crude oil sourcing at present is very volatile and unpredictable, and Hindustan Petroleum is procuring more on a delivered basis than free-on-board (FOB) and term contracts, Vikas Kaushal, Chairman and Managing Director (CMD) of the state-owned oil-marketing company told analysts in an investor call on Friday (October 23, 2026). Purchases on delivered basis entail the seller bearing the cost of shipping the oil and associated risks until it reaches the buyer’s port or facility.
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