In a rare strategic pivot, Reliance Industries has purchased high-sulphur fuel oil from Hindustan Petroleum Corporation Limited (HPCL), signaling a departure from its usual reliance on Russian supplies. According to several industry insiders, Reliance secured two cargoes, each around 33,000 metric tons, through HPCL tenders that closed in late July and early August, with loading scheduled at Visakhapatnam in late August and early September.
This shift comes amid mounting pressure from the U.S. Trump administration, which recently imposed 25% tariffs on Indian goods, and threatened more, for continued energy engagements with Russia. The policy backdrop has prompted Reliance to explore lower-cost, non-Russian fuel oil alternatives.
Urgency for diversification is growing. Russian fuel oil exports to India, which are almost entirely consumed by Reliance, are forecast to drop sharply from over 750,000 tons in July to under 400,000 tons in August. In response, Reliance is broadening its sourcing strategy and may increasingly lean on Middle Eastern supply chains to support its massive 1.4 million barrels-per-day refining hub at Jamnagar.
Meanwhile, India’s state-run refiners are awaiting government guidance on future Russian oil purchases, and have already pulled back from spot buying, further underscoring a broader energy shift.
