Indian Oil Corporation recently made a significant decision, as a result of which oil imported from Gulf countries will no longer be available at any IOC petrol pump. The company is now planning to source oil elsewhere.

Indian Oil Corporation's big decision, will no longer buy oil from Gulf countries

War has raged in the Middle East since February, blocking the Strait of Hormuz and causing disruptions to the movement of crude oil. This has led to a shortage in many countries, including India. Following this, India's largest public sector oil company, Indian Oil Corporation Limited, has made a significant decision. Consequently, oil from Gulf countries will no longer be available at any IOCL petrol pump.

In fact, Indian Oil Corporation Limited has decided that it will no longer purchase oil from the Middle East, so that India's dependence on Gulf countries for oil does not continue.

Annual deals to be cut
According to a report in E-Times, a source close to the company has revealed that Indian Oil Corp (IOC) is planning to cut its annual oil purchase deal from the Middle East in 2027/28. The reason being cited is that the ongoing war in Iran is impacting supplies from the region. Consequently, relying solely on the Middle East for oil is not a good idea.

Where will the company buy oil from?
But the question is, if the oil company doesn't buy oil from the Middle East, where will it buy it from? The answer to this question has been provided by a source, who stated that Indian Oil Corporation plans to source approximately 47% of its crude oil imports on a free-on-board (FOB) basis for the fiscal year ending March 2027, under annual agreements with Middle East producers.

The source said the state-owned refinery company will slightly reduce the quantity of crude oil it buys next year under annual agreements with producers in Gulf countries.

India's dependence on the Middle East
: Indian refineries have traditionally relied on the Middle East for more than half of their annual crude oil supply, especially heavy and high-sulphur grades, due to the region's proximity.