BPCL begins talks to import Iranian oil
What's the story
Bharat Petroleum Corporation Limited (BPCL), India's second-largest fuel retailer, has begun talks with Iranian suppliers for the resumption of crude oil imports. The move comes as the company awaits a clear geopolitical and regulatory framework. BPCL's Finance Director Vetsa Ramakrishna Gupta told Moneycontrol that these discussions are mainly focused on Iranian oil.
Procurement strategy
Crude procurement commitments and supply continuity measures
Gupta said BPCL's crude procurement is committed until August, with fresh requirements starting from September 1. He added that the company will resume buying once there is clarity on the waiver extension beyond August 21 and an agreement between Iran and the US. Currently, BPCL sources nearly 40% of its crude needs from Russia while increasing spot market purchases to ensure supply continuity.
Future sourcing
Plans to diversify LPG sourcing beyond Middle East
Gupta also spoke about BPCL's plans to diversify its LPG sourcing beyond the Middle East. The company is looking at countries like the US, Angola, Argentina, and Iran as potential suppliers. While direct sourcing from Iran has not yet started, it is seen as a definite "next source" for LPG in the future.
Storage issues
Concerns over India's LPG storage capacity
Gupta also raised concerns over India's LPG storage capacity of 8-10 days, saying it's not enough to handle global crises. "We have identified the overall capacity. Now we have to finalise how we will do it," he said. "You know, the question is how we do it, whether it will be done by the respective companies, whether it will be done on a common industry basis, or whether, with the help of the government, strategic reserves have to be created."