India’s largest state-owned oil company, Indian Oil Corporation (IOC), has purchased approximately 5 million barrels of crude oil from the international market this week.
Updated: May 30, 2026, 10:29 PM IST
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New Delhi: India’s largest state-owned oil company, Indian Oil Corporation (IOC), has purchased approximately 5 million barrels of crude oil from the international market this week. According to the news agency Reuters, the company executed these purchases through tenders issued to countries in West Africa and West Asia. Indian Oil has made these acquisitions at a time when the global market is witnessing continuous volatility regarding both crude oil prices and supply. This deal is being viewed as a significant step toward bolstering India’s energy security.
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Special Crude Oil Purchased from Africa
According to media reports, Indian Oil has purchased crude oil varieties known as ‘Kissanje’ and ‘Nemba’ from Angola. This oil is slated to be shipped to the company’s Paradip refinery located in Odisha. Additionally, the company has acquired Nigerian ‘Usan’ crude, sourced from the American energy giant ExxonMobil. It is reported that the cost of these cargoes arriving from West Africa was approximately $4 per barrel higher than that of Brent crude. Despite this premium, IOC proceeded with the purchase to ensure a diversified oil supply chain and to avoid excessive reliance on any single geographical region. Experts believe that India is now adopting a more strategic approach toward its oil procurement.
Major Purchases Also Made from the Middle East
In addition to West Africa, Indian Oil also procured substantial quantities of crude oil from the Middle East. The company purchased Abu Dhabi’s renowned ‘Murban’ crude from the trading firm Mercuria; this consignment is destined for the company’s Vadinar plant in Gujarat. Furthermore, Murban crude was also purchased from Totsa—the trading arm of TotalEnergies—with the supply designated for Chennai. Sources indicate that the price of Murban crude hovered around the level of Brent crude, or traded at a slight premium over it. Murban crude is highly regarded for its superior quality and supply stability, which is why Indian refineries have consistently continued to procure it.
Will Petrol and Diesel Prices Decrease?
Following this purchase, the question now arises: will the country see any relief in petrol and diesel prices? Experts suggest that simply purchasing oil in large quantities does not guarantee an immediate reduction in prices. Fuel prices in India depend on a multitude of factors, such as international crude oil rates, the value of the Rupee against the Dollar, taxes, and transportation costs. However, if global crude oil prices remain stable in the near future and supply remains robust, the prices of petrol and diesel could potentially decrease.
