The refiner said cargo prices varied sharply during the September quarter as spot purchases, freight, crude grade and supply geography shaped costs. Russian oil made up about 55% of its basket in the first half of the financial year.
Indian Oil Corporation said crude purchases swung sharply through the September quarter, with cargoes sometimes priced at a discount of as much as $5 a barrel and at other times carrying a premium of up to $12, underscoring the volatility facing refiners as benchmark oil prices whipsawed. Finance director Anuj Jain gave the update during a post-results call, saying procurement costs were being shaped by delivery terms, freight, crude grade and geography.
The state-run refiner reported a net profit of ₹21,630 crore for the second quarter, more than double the level a year earlier, helped by stronger refining margins and a short-lived easing in benchmark crude prices. Independent reporting on the earnings also pointed to improved petrochemical and gas margins as a factor in the better performance, even as marketing losses on fuel sales persisted.
Jain said Russian crude made up about 55% of Indian Oil’s crude basket in the first half of the financial year, followed by supplies from the Middle East, mainly Saudi Arabia and Dubai, at 24%. Africa contributed roughly 10%, Brazil about 7%, and the United States and Venezuela accounted for smaller shares. The company said around 87% of its crude procurement in the period came through spot purchases, but Jain stressed that spot buying did not automatically mean higher costs because prices varied sharply by source and region.
The executive said Indian Oil had at times been able to secure deeply discounted barrels, including shipments from Iraq, and would move quickly when those cargoes were available. He said negotiation also played a material role in the final cost. Reuters-style reporting on the call noted that the company has continued to buy Venezuelan crude as part of its effort to diversify supplies and keep refineries well fed despite market disruptions.
Jain also flagged rising pressure from liquefied petroleum gas under-recoveries. He said the shortfall stood at ₹184 per cylinder in September, climbed to ₹229 in October and was expected to rise further to ₹309 in November and ₹370 in December. Reports on the company’s results said these losses were partly offset in the quarter by the temporary dip in crude prices and by compensation linked to the government’s support for LPG sales.
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