Indian Refiner BPCL Looks to Source Cheaper U.S. LPG in Swap Deal
Indian state-held refiner and fuel retailer Bharat Petroleum Corporation Ltd (BPCL) is in discussions with suppliers to swap a Middle East cargo with liquefied petroleum gas (LPG) with cheaper supply from the United States, the refiner’s head of finance, Vetsa Ramakrishna Gupta, said on Friday. “We are approaching suppliers. We see little bit of opportunity in terms of U.S. LPG. We are expecting a net benefit of $20 to $30 per ton,” Reuters quoted Gupta as telling analysts today. The U.S.-China trade war has widened the discount of U.S. LPG to Middle Eastern supply as trade routes to Asia have been upended. Currently, India receives over 80% of its LPG supply via annual contracts with Middle Eastern exporters including top OPEC producers Saudi Arabia, the United Arab Emirates (UAE), Kuwait, as well as Qatar. Increased supply of U.S. petroleum and other energy products to India could dovetail with the Indian government’s goal of boosting energy imports from the United States pending tariff and trade talks. India is ramping up purchases and imports of crude oil from the United States ahead of crucial talks on the U.S. tariffs this month. As many as 11.2 million barrels of U.S. crude are on route to arrive in India in June, per data from analytics firm Kpler cited by Bloomberg. This would be the highest U.S. crude volume arriving in India since August 2024. India’s state-owned refining giants are leading the higher purchases of U.S. crude, as India hopes to have tariffs lowered if it buys more American energy products. State Indian refiners, including BPCL and Indian Oil Corporation, have bought at tenders this month at least 6 million barrels of crude from the U.S. due to arrive in India in June, Bloomberg calculations showed. Most Asian countries are racing to pledge increased imports of U.S. energy to avoid the high tariffs slapped on them in early April. Delegations from many Asian countries are heading to Washington D.C. these days to discuss the U.S. tariffs, which are the highest for economies in Asia and Southeast Asia.
BPCL refineries utilise 115 pc capacity at record 40.5 mn tonnes in FY25: Hardeep Puri
Minister of Petroleum and Natural Gas, Hardeep Singh Puri, on Friday lauded the performance of Bharat Petroleum Corporation Ltd (BPCL), as the government-owned oil major has achieved its highest-ever refinery throughput of 40.5 million metric tonnes with 115 per cent capacity utilisation and made a net profit of Rs 132.75 billion for 2024-25. The minister held a meeting with BPCL chairman and managing director Sanjay Khanna to review the performance of the Maharatna oil PSU. Khanna holds the additional charge as CMD of the company. “During 2024-25, the company has achieved highest ever market sales of 52.4 MMT beating earlier record of 51.0 MMT, highest ever refinery throughput 40.5 MMT with 115 per cent capacity utilisation, Highest capex of Rs 170 billion, outstanding gross refining margin 6.82 $/bbl and Rs 132.75 billion profit after tax,” the minister posted on X. He further stated that BPCL has commissioned a 5 MW GH2 at Bina refinery in just 15 months, setting a benchmark for rapid and cost-effective execution. This initiative forms a core part of BPCL’s strategy to achieve Net Zero for Scope 1 and Scope 2 emissions by 2040 to contribute towards India’s green energy transition.
Trump & Tariffs: India’s crude oil purchases from the US to surge in April-June
India and the US deliberate on the fine print of a bilateral trade deal, the world’s third largest crude oil importer is expected to buy more than 1 million barrels per day (mb/d) from the US during April-June 2025—a record high. This is in line with India’s stated position to enhance annual energy imports from the US to $25 billion from $15 billion currently. Both crude oil and liquefied natural gas (LNG) purchases from the US are already at a record high in 2024 calendar year (CY). According to global real-time data and analytics provider Kpler, India’s crude oil imports from the US rose 17 per cent m-o-m and 68 per cent y-o-y to roughly 337 thousand barrels per day (kb/d) last month—an eight-month high—provisionally. April is the third consecutive month with in-bound shipments clocking higher volumes. As per Kpler data, India is likely to import around 1,007 kb/d of crude oil from the US during April to June this CY, which is higher by 29 per cent y-o-y and more than double the imports during Q2 2023. The US EIA data also points to a similar dynamic. India imported around 942 kb/d during April-June 2024, which is 43 per cent higher than Q2 2023 and 35 per cent higher than Q2 2022. Imports during Q2 2024 are the highest on record, barring the Covid-impacted Q2 2021 when cargoes touched 1,355 kb/d as prices hit rock bottom. Trade & Geopolitics Sumit Ritolia, Kpler’s Lead Research Analyst for Refining & Modeling, told businessline: “US crude imports by Indian refiners—particularly public sector entities—are shaped by a mix of geopolitical considerations and trade diversification efforts. While diplomatic balancing may justify one or two cargoes, refinery economics ultimately drive sustained buying. Currently, discounted WTI prices are being used to stimulate Asian demand amid weakening Chinese appetite.” US EIA in its December 2024 Short Term Energy Outlook, said that India emerged as the leading source of growth in global oil consumption in 2024 and 2025, overtaking China this year. This is important considering China’s oil consumption outpaced India’s almost every year from 1998 through 2023. Ritolia explained that the exemption on crude oil and natural gas from tariffs, offers a strategic avenue to increase US energy imports without incurring additional tariff costs. “Data indicates a significant uptick in US crude oil imports by India. In April 2025, imports reached around 337 kb/d. State-run refiners, including Indian Oil Corporation and Bharat Petroleum, have been at the forefront of this increase, accounting for over 70 per cent of the imports. This shift underscores a strategic pivot towards US energy sources, aligning with broader trade objectives,” he said. Crude from the US offers a viable option, providing high-quality, light-sweet grades that are well-suited for India’s refining capacities. “Additionally, increased US imports help mitigate over-reliance on Middle Eastern suppliers, enhancing energy security. Also, Nigeria and Angola may see their volumes to India fall as US supply gains ground. Strategic preference for light sweet grades amid reduced arbitrage from West Africa,” he added.
Indian refiners target cheaper US LPG imports with help from China tariffs
Chinese import tariffs have unwittingly come to India’s assistance to help boost imports of US liquefied petroleum gas (LPG) at rates cheaper than what it pays for supplies from West Asia, according to industry sources and shipping data. After stepping up crude imports and tying up US liquefied natural gas (LNG) supplies, Indian state-run oil companies are evaluating options for LPG imports from the US in July, directly under term contract arrangements — when they begin talks to secure shipments of the cooking fuel for 2026, top refining sources told Business Standard. Talks are also on to secure cheap US LPG in the immediate term in exchange for contracted West Asian supplies. India is a $12 billion LPG market, equivalent to a third of its trade surplus with the US for 2024. India’s LPG market is dominated by supplies from United Arab Emirates, Qatar, Kuwait, and Saudi Arabia. The advent of US LPG will enhance India’s security of supply for a sensitive fuel, used in kitchens across the nation, an official said. India imported around 20.8 million tonnes of LPG, around 66 per cent of its needs, in 2024-25, according to oil ministry data. The US share was negligible. “Cheap US LPG is flooding the market,” an official from a state refiner said, adding that with the right discounts US suppliers could capture a large portion of the Indian LPG market, just as discounted Russian oil gobbled up 40 per cent of India’s crude oil import business after the war in Ukraine and accompanying sanctions, the official said. It depends on how long the Chinese import tariffs last, another official said. The availability of US LPG was driven by the steep 145 per cent tariffs imposed by the Trump administration last month on most Chinese imports, leading to China retaliating with a 125 per cent charge on US purchases.
OPEC Moves Up Meeting To Discuss Oil Production Quotas
The OPEC+ members currently participating in voluntary production cuts will meet this Saturday, May 3, instead of Monday, May 5, according to Kpler’s Amena Bakr on X. The call is set for noon Vienna time, with the agenda focused on “consensus building around maintaining the sped-up increment of 411K for June.” Brent crude had slipped nearly 1% by late Friday morning, trading at $61.56. It’s a price level not seen since early 2021—and one that puts most OPEC+ budgets underwater. For producers already grappling with restricted output, prices below $65 are a growing fiscal headache. The accelerated meeting follows mounting tensions within the group. Reports suggest Saudi Arabia is signaling it can live with lower prices—a not-so-subtle message to chronic overproducers like Iraq and Kazakhstan. The 411,000 bpd production increase originally floated as a wake-up call may now be cemented into policy, signaling a strategic shift in Riyadh’s approach. OPEC+ has pledged to offset 4.57 million bpd of overproduction by mid-2026. But enforcement remains patchy. Saturday’s call will test whether Riyadh and Moscow can still steer the ship—or whether quota politics are about to devolve into a full-blown battle for market share. Meanwhile, a Bloomberg survey released Thursday showed that OPEC’s actual output fell by 200,000 bpd in April, down to 27.24 million—contradicting the group’s planned increase. Market pessimism is already pricing in a production hike. But April’s figures are a reminder: announced increases don’t always materialize. Whether Saudi Arabia will keep absorbing the blow while others cheat—or start using price as a weapon to enforce discipline—won’t be decided in a Vienna video call. It’ll be decided at the wellhead.