HPCL, BPCL have secured crude supplies till August, scouting for September
Indian oil-marketing companies HPCL and BPCL have secured crude oil supplies through August and are currently sourcing for September. The companies are diversifying their supply chains, including increased reliance on Russian crude, to mitigate risks from West Asian shipping disruptions.
Why it matters
This reflects the strategic adjustments of energy-importing nations to maintain supply stability amidst geopolitical conflicts.
State-owned oil-marketing companies, Hindustan Petroleum and Bharat Petroleum, have secured their supplies until the end of August and are working on procuring supplies for September onwards, executives of the two oil-marketing companies told analysts in their respective post-results call Thursday.
Speaking to analysts, Vikas Kaushal, Chairman and Managing Director (CMD) at Hindustan Petroleum informed the refiner had supplies stocked until the end of August.
“We are very well covered for our crude till the end of August fully. In fact, yesterday we have started to buy for September,” informed Mr. Kaushal.
Separately, Vetsa Ramakrishna Gupta, Director (Finance) at Bharat Petroleum also informed that their stocks too were tied until August and had begun scouting for September onwards.
The first tranche of the conflict in West Asia which spanned for more than hundred days disrupted shipping and energy trade through the essential energy route, that is, the Strait of Hormuz.
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