Crude oil
Citing the purchase of oil from Russia, US President Donald Trump has imposed a total tariff of 50 percent on India and told India that if he buys oil from Russia, it will be put on more tariffs. However, there has been no statement from the US recently on applying additional tariffs. However, the Indian oil company Indian Oil (IOCL) said on Monday to buy oil from Russia that it will continue purchasing Russian crude oil in the current quarter, which will be decided on the basis of economy. That is, there will be shopping from where cheap oil is available.
This statement from the company has come at a time when India is facing a threat of 50% tariff from America. Washington has already announced an additional 25% tariff on India for continuing to buy Russian oil. In the first quarter of FY 2026, the share of Russian oil was 24% of the total import of IOCL, which was 22% in FY 2025.
The company said during an analyst call that in FY 25 last year, we got about 22% of Russian crude oil. It was about 24% in the first quarter of FY 26. In this quarter, we will continue purchasing Russian crude oil based on financial condition.
What is the company’s plan?
IOCL has prepared a capital experience of Rs 34,000 crore for financial year 26. Of this, Rs 14,000-15,000 crore will be spent for refinery operations and Rs 15,000-16,000 crore for petrochemicals, marketing, pipelines and city gas distribution. The company is also increasing refining capacity through many projects. The work of increasing the capacity of Panipat refinery from 15 million metric tonnes per year to 25 MMTPA will start by the end of this year. The capacity of Gujarat’s Koyli refinery will also be increased from 13.7 mmtpa to 18 MMTPA.
At the same time, the expansion of the Barauni Refinery of Bihar, which will increase the capacity from 6 MMTPA to 9 MMTPA, will be completed by August 2026. The board has recently approved the project cost to increase the project cost from Rs 13,779 crore to Rs 16,724 crore due to increased cost of plant and machinery.