New Delhi: India has decided to import crude oil from Venezuela after a gap of around 11 months. In April, Indian ports are expected to receive about 10 to 12 million barrels of crude oil from the South American country. This comes at a time when global energy markets are facing uncertainty.
Move Driven By Supply Concerns
The decision comes as tensions in West Asia, especially around the Strait of Hormuz, have disrupted oil supplies. India is now looking at alternative sources to ensure steady supply. According to commodity analytics firm Kpler, this is not just a short-term solution but part of a long-term strategy to diversify oil imports.
Experts say the shipments arriving in April were planned earlier, even before the recent crisis. This shows that India had already started preparing for possible disruptions in supply.
Why Venezuela Oil Matters
Venezuela mainly produces heavy crude oil, which is suitable for India’s advanced refineries. Complex refineries like Reliance Industries’ Jamnagar refinery and Nayara Energy’s Vadinar plant are designed to process high-sulphur crude efficiently.
Some shipments may also reach Cochin port, supporting Bharat Petroleum Corporation Limited’s refinery operations.
Boost For Fuel Production
Heavy crude oil helps produce more middle distillates such as diesel and jet fuel. These fuels are currently in high demand globally. By importing Venezuelan oil, India can improve refinery output and meet rising demand for these fuels.
Strengthening Energy Security
Before US sanctions, Venezuela was an important oil supplier for India. In FY18, it contributed about 6.7% to India’s total crude imports. Now, by restarting imports, India is once again strengthening its energy security and reducing dependence on limited regions.
This move highlights India’s strategy of diversifying oil sources to protect itself from global supply shocks and geopolitical tensions.
