Hindustan Petroleum’s Chairman and Managing Director (CMD), Vikas Kaushal, recently assured stakeholders that concerns about Russian crude oil are not keeping him up at night. During a call with investors and analysts on Friday, October 31, 2025, Kaushal highlighted that Russian crude makes up a mere 5% of the company’s total oil procurement. He confidently stated that HPCL has ample alternative sources to meet its needs, ensuring a resilient supply chain.
Kaushal further elaborated that crude oil purchasing decisions are driven primarily by economics, considering factors such as price, crude quality, and the processing capabilities of their refineries. This strategic approach allows HPCL to optimize its operations and profitability.
In the second quarter, Hindustan Petroleum acquired a total of 6.1 million tonnes of crude. Out of this, 1.1 million tonnes were sourced domestically, while the remaining 5 million tonnes were imported. Kaushal reiterated that Russian crude constituted only 5% of this overall mix. He explained, “The primary reason for this relatively low percentage is that it hasn’t been economically viable to process Russian crude in our refineries.” He added that HPCL’s refineries are predominantly configured to run on crude from the Middle East and increasingly, from West Africa, which offer better operational and cost efficiencies.
Kaushal emphasized HPCL’s strong asset base and diverse crude slate, saying, “We are exceptionally well-positioned with our existing assets to handle other crude types. Even when market conditions become challenging, we know exactly which crudes to target to maintain our margins, and often, those are not Russian crudes.” He confirmed that while their refineries are capable of processing Russian crudes, they consistently have superior alternatives at their disposal.
The procurement of Russian oil by India has drawn international attention, evolving into a significant geopolitical issue. The United States, for instance, has imposed an additional 25% tariff on Indian imports, classifying it as a ‘penalty’ for India’s continued purchases of Russian oil. Despite these pressures, India has consistently affirmed its commitment to prioritizing its own economic and energy security above all other considerations.
Earlier in the week, Indian Oil, a major refining peer of HPCL, echoed a similar sentiment. They publicly stated their intention to continue purchasing Russian oil as long as their transactions remain fully compliant with all Western sanctions, underscoring a unified stance among Indian refiners on this matter.