Venezuelan oil, but why India may find it tough to buy a lot more

US Secretary of State Marco Rubio visited Reliance Industries’ Jamnagar refinery and urged India, particularly RIL, to increase imports of Venezuelan crude oil.

Why India Is Important for Venezuelan Oil

• Venezuelan crude, especially the Merey grade, is extremely heavy and sulphurous.
• Reliance’s Jamnagar refinery, with around 1.4 million barrels per day capacity, is among the few facilities globally capable of processing such crude efficiently. Pasted text(1)
• Some other Indian refiners such as Indian Oil, HPCL and Nayara Energy can also process limited quantities.

Why India Cannot Import Unlimited Venezuelan Crude

Refining Constraints

• Most Indian refineries are not designed to process very large volumes of extremely heavy, high-sulphur crude.
• Even Reliance’s advanced refinery configuration does not mean it can absorb unlimited Venezuelan supplies. Pasted text(1)

High Freight Cost

• Merey crude may be offered at around a $25/barrel discount to Brent, but freight to India’s west coast can cost about $35/barrel.
• High transport costs can therefore turn an apparent discount into a landed premium. Pasted text(1)

Commercial Considerations

• Indian refiners base purchases on price, crude quality, freight, payment arrangements and supply reliability rather than geopolitical preference alone. Pasted text(1)
• Venezuelan oil must also compete with nearby heavy crude grades from West Asia, especially Iraq, where transport costs are much lower. Pasted text(1)

India’s Venezuelan Oil Imports

• India’s Venezuelan crude imports increased from almost zero before the West Asia crisis to about 350,000 bpd in August 2026, before easing to around 200,000 bpd in September. Pasted text(1)
• During April–August 2026, India imported Venezuelan crude worth about $3.59 billion.
• Reliance accounted for 74.3% of these imports, followed by Indian Oil, HPCL-linked facilities and Nayara Energy. Pasted text(1)

Venezuelan Crude vs Russian Crude

• Venezuelan oil cannot substitute Russian crude on a large scale.
• Russia’s Urals crude is more compatible with a much broader section of India’s refining infrastructure.
• Commercial terms and logistics also differ considerably between Venezuelan and Russian supplies. Pasted text(1)

Russia’s Importance for India

• In September 2026, India imported about 1.9 million bpd of Russian crude, accounting for over 35% of total oil imports.
• Russian imports had reached a record 2.8 million bpd in July 2026, when Russia supplied more than half of India’s crude imports. Pasted text(1)

US Strategic Objective

• Washington wants:
  • A larger global market for Venezuelan crude.
  • India to diversify away from excessive dependence on particular oil-producing regions.
  • Reduced Indian dependence on Russian crude. Pasted text(1)
• However, experts argue India should not allow higher Venezuelan imports to be linked automatically with reductions in Russian purchases.

India can increase Venezuelan crude imports to some extent, especially through Reliance’s Jamnagar refinery, but technical limitations, high shipping costs and competition from cheaper nearby crude supplies mean Venezuelan oil is unlikely to replace Russian crude in India’s energy basket.