Amid shifting global energy dynamics, India’s largest private refiner has signalled openness to resuming purchases of Venezuelan crude, subject to regulatory approval. Reliance Industries Ltd said it would consider buying oil from Venezuela if sales are officially permitted to non-U.S. buyers.
“We await clarity on access for Venezuelan oil by non-U.S. buyers and will consider buying the oil in a compliant manner,” a Reliance Industries spokesperson said in an emailed response to queries from a news agency.
Industry sources said state-run refiners Indian Oil Corp and Hindustan Petroleum Corp are also open to purchasing Venezuelan oil if such sales are cleared for non-U.S. companies. Both firms did not immediately respond to requests for comment.
Reliance had stopped buying Venezuelan oil from March 2025 after U.S. President Donald Trump announced a 25% tariff on countries importing crude from Venezuela. The company received its last cargo in May last year.
This week, Caracas and Washington reached an agreement allowing exports of up to $2 billion worth of Venezuelan crude, estimated at 30–50 million barrels, to the United States. The deal followed the capture of President Nicolas Maduro by U.S. forces on January 3.
Reliance operates 2 refinery complexes in Gujarat with a combined capacity of about 1.4 million barrels per day. These facilities are designed to process heavier and cheaper crude grades such as Venezuela’s Merey.
“If Venezuelan barrels re-enter global markets, they are likely to come at a discount, improving feedstock optionality and economics for compatible refiners, even if volumes remain limited,” said Sumit Ritola, lead research analyst for refining and modelling at Kpler.
Several Indian refiners, including HPCL-Mittal Energy, Nayara Energy, IOC, and Mangalore Refinery and Petrochemicals, have imported Venezuelan oil in the past, according to trade flow data.
Ritola said Venezuelan crude could offer India a “politically acceptable diversification option” away from Russian oil. India has faced growing pressure from Western nations to reduce Russian crude purchases following Moscow’s invasion of Ukraine. The U.S. last year doubled tariffs on Indian goods to 50%, citing India’s large intake of Russian oil.
A Republican Senator said on Wednesday that Trump had “greenlit” legislation aimed at sanctioning countries doing business with Russia. While some state refiners and Nayara Energy are expected to continue importing Russian oil, Reliance has said it will not receive Russian crude in January. This move could push India’s Russian oil imports to their lowest level in years.
“We’ve already seen that Reliance has reduced its intake of Russian crude, which indicates refiners are willing and able to adapt when compliance or trade risks rise,” Ritola said.
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