Get Instant Loan up to ₹10 Lakh!
Indian Oil buying sanction-free Russian crude, chairman says, projects 6-7% gasoline demand growth by 2026
Indian Oil is purchasing Russian crude oil without sanctioned entities' involvement. The company anticipates a 6-7% growth in gasoline demand and 4% in diesel by 2026. However, petrochemical margins are expected to remain weak due to oversupply, according to the chairman.
Public sector behemoth Indian Oil Corporation (IOCL) is buying Russian crude oil cargoes that are not involved with sanctioned entities, according to Chairman AS Sahney, Reuters reported.
Sahney further told the agency on February 11 that he expects gasoline demand to grow 6-7 per cent in the fiscal year 2026, and diesel demand will grow 4 per cent in the year to 2026, it added.
On Indian Petrochemicals Sector
“Indian petrochemical margins will remain weak in 2025. I don't see margins recovering this year as well. Oversupply in petrochemical markets will keep margins subdued,” Sahney told reporters on the sidelines of India Energy Week (IEW) in New Delhi on February 11, the report added.
On Expanded Panipat Refinery
The state-run oil giant expects to operate the expanded 500,000 barrels-per-day Panipat refinery by June 2026 and is waiting for approval for construction of the 180,000 bpd Nagapattinam refinery from the oil ministry, Director of Refineries Arvind Kumar said at the industry event.
“It will take 40-50 months to complete construction of the Nagapattinam refinery in southern state of Tamil Nadu,” Kumar said, as per the report.
Indian Oil in talks with Cheniere for 15-year LNG deal
Further, in another report, Reuters cited sources to report that Indian Oil is in talks with United States-based firm Cheniere Energy for a 15-year liquefied natural gas (LNG) deal.
The deal is for LNG with volumes between 1.5 million to 2 million metric tons per year, a company source told Reuters on the sidelines of the India Energy Week conference on February 11.
The source added that they hope to get US LNG supplies through the deal from April 2027.
India open to buying energy from all sources: Hardeep Singh Puri
On February 10, Union Oil Minister Hardeep Singh Puri said that India is open to energy imports from all sources at the lowest rates and domestic oil marketing firms are looking for more gas which is expected to cost less in 2026, according to a PTI report.
Addressing a presser on Indian Energy Week 2025, Puri said, “Today we have a situation that we have (increased) from 27 suppliers to 39 suppliers. We added Argentina among others. We are open to import from all sources. We issued tenders at the importation. Those tenders are open to any supplier. We buy from the cheapest source possible.”
He also informed that domestic (oil marketing firms) companies are looking for more gas, the PTI report said.
(With inputs from Reuters, PTI)
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsCompaniesNewsIndian Oil buying sanction-free Russian crude, chairman says, projects 6-7% gasoline demand growth by 2026
First Published:11 Feb 2025, 10:59 AM IST
- Top Gainers
- Top Losers
- 52 Week High