As the opening of Venezuela's oil market nears due to actions by the Donald Trump administration, Indian refining corporations that have faced disruptions in oil supply chains are seeking new opportunities in Venezuela.
On the 12th, the Financial Times (FT) in the United Kingdom reported, "As the United States intervenes to oust the Maduro regime and take control of Venezuela's energy resources, Indian refiners are regaining access to the world's largest crude reserves, purchases of which they had almost halted due to U.S. sanctions."
Earlier, on the 9th, Reuters cited sources as saying that Reliance Industries Limited, India's largest private refiner, is in talks with the U.S. State and Treasury departments to obtain approval to purchase Venezuelan crude to secure supply. The company previously received permission from the U.S. government to import Venezuelan crude under sanctions.
Indian refiners, including Reliance Industries Limited, were major buyers of Venezuelan crude through 2018. But as the first Trump administration tightened sanctions on the Nicolás Maduro regime, it became difficult to purchase Venezuelan crude.
India has offset reduced Venezuelan crude by increasing imports of Russian oil, but the Trump administration warned it could impose an additional tariff on India over Russian oil imports, making even that difficult. On the 6th, Reliance Industries Limited also said, "The Jamnagar refinery has not received any Russian crude for the past three weeks."
Amid this situation, expectations in India's refining sector are rising as the possibility grows that imports of Venezuelan crude could resume. Venezuela's heavy crude is relatively lower quality and trades cheaper than Brent, the international benchmark. For Indian refiners seeking alternative supplies to cheap Russian oil, it is an attractive option.
After the previous Joe Biden administration partially eased sanctions on Venezuela, India gradually increased imports of Venezuelan crude. In the fiscal year ending Mar. 2025, India imported $1.4 billion worth of Venezuelan crude. That is one-quarter of the $6 billion recorded in the fiscal year through Mar. 2020, but if the United States fully opens the market for Venezuelan crude, imports are expected to rise sharply.
Michael Kugelman, a senior associate for South Asia at the think tank Atlantic Council, said, "In principle, India has much to gain," and noted, "India's private energy conglomerates can refine Venezuela's heavy crude for considerable revenue, and especially if imports of Russian oil continue to decline, it will also help India achieve its goal of diversifying overseas oil supplies."
Premasish Das, who heads crude and fuel research for Eurasia, Africa and the Middle East at U.S. financial services corporations S&P Global, also assessed, "Indian refiners are very familiar with Venezuelan crude, and if conditions improve, they are highly likely to resume purchases."