No discounts on Russian crude for September deliveries: BPCL

While the state-run refiner has secured crude supplies for July and August and booked some September cargoes, it expects clarity on September pricing over the next week | Photo Credit: JOTHI RAMALINGAM B

State-run Bharat Petroleum Corporation (BPCL) said on Thursday that traders have stopped offering discounts on Russian crude oil for delivery in September 2026.

The development comes as the Houthi rebels have threatened to block the Bab al-Mandab Strait and have attacked a couple of vessels carrying Saudi crude, pushing Brent again past the $100 per barrel on Thursday.

However, the PSU oil marketing company (OMC) has contracted crude oil supplies for July and August 2026 and has also booked a couple of cargoes for delivery in September.

In a post-results analyst call, VRK Gupta, Director (Finance) at BPCL, said, “Till August we have completed the deals, including Russian Urals and ESPO. September offers are coming. We have to wait, may be next one week, we will come to know what will be the discount scenario. But, definitely based on the recent development in the crude market now no one is offering any discount for Russian crude.”

Pointing out the uncertainty regarding the end of the conflict in West Asia, he noted that markets witnessed a brief period of stability in June.

However, the latest geopolitical development has reminded us how quickly it can reshape the operating landscape, he added.

BPCL diversifies sourcing as Red Sea risks persist

“Based on recent issues in the Red Sea route, there may be certain issues in terms of couple of cargoes, but otherwise we have sufficient crude oil till August 31, 2026. Maintaining 30 days of crude also. September 2026 window has opened. Couple of cargoes we have booked. Maybe in the next 7-10 days, we will complete the deals for September 2026. No visibility beyond September,” Gupta said.

On navigating the West Asia conflict during Q1 FY27, he said that due to disruptions in tied-up term crude volumes, BPCL proactively optimised its crude sourcing by significantly increasing spot crude purchases, with spot percentage rising to almost 69 per cent in Q1 FY27 from 44 per cent in the corresponding previous year.

“We diversified our crude sourcing outside of the Strait of Hormuz, exploring multiple geographies, including increasing the Russian crude grades to 38 per cent of our total procurement during this quarter. We also procured two new crude grades from Venezuela and Angola,” Gupta added.

Q1 loss reflects pressure from stable fuel prices and LPG under-recoveries

On Wednesday, BPCL posted a consolidated net loss of around Rs 1,873 crore during the West Asia conflict-impacted Q1 FY27, as it largely kept retail prices of diesel, petrol and LPG stable, even as Brent crude prices surpassed the psychological $100-per-barrel mark.

It attributed the loss mainly to suppressed marketing margins on certain petroleum products, which were partially offset by higher refining margins.

Its LPG under recoveries stood at ₹15,803.74 crore as of June 30, 2026, compared to ₹12,318.52 crore as of March 31, 2026.

Published on July 23, 2026