New Delhi: A possible disruption to Russian oil supplies, coupled with continued pressure around the Strait of Hormuz, could pose a "huge challenge" for Indian oil companies to secure crude and meet domestic fuel demand, BPCL Chairman & MD Sanjay Khanna said on Thursday.
"Today, all the companies are procuring in the range of 35 to 45 per cent Russian oil and, you know, making a ban on that quantity and with the Strait of Hormuz under pressure, definitely it will be a huge challenge for oil companies to get the crude and cater to the national demand," Khanna said at BPCL's Post AGM Virtual Press Conference.
His comments come amid uncertainty over India's Russian crude purchases following US moves to tighten sanctions on buyers of Russian energy. The US Senate in early August passed the Russia Sanctions Bill, which could impose tariffs of up to 100 per cent on top countries, including India and China, purchasing Russian crude oil and natural gas.
Khanna said BPCL was assessing the situation and exploring alternative crude sources across "every possible geography". "It is a very uncertain situation. Nobody knows how it will unfold next week," he said.
He said BPCL's crude and LPG supplies were currently in place, supported by diversified sourcing, but cautioned that the situation could change with geopolitical developments. The company has expanded sourcing from countries including Venezuela and Angola.
BPCL recorded consolidated capital expenditure of Rs 21,372 crore in FY26. It reported a net loss of Rs 3,962 crore in the June quarter, against a net profit of Rs 3,191 crore in the March quarter. Revenue rose 27.5 per cent sequentially to Rs 1.51 lakh crore.