Reliance Drives India’s Venezuelan Oil Imports to a Seven-Year High as Refiners Seek Cheaper Crude
India is preparing for a sharp increase in crude oil imports from Venezuela in October, with Reliance Industries emerging as a major driver of the renewed trade. According to Kpler estimates cited by The Economic Times, Venezuelan crude deliveries to India could reach around 465,000 barrels per day (bpd) this month, more than double September’s estimated 196,000 bpd.
If scheduled cargoes arrive as expected, October shipments would represent India’s highest monthly Venezuelan crude inflows since December 2019. The development highlights how rapidly Indian refiners are adjusting their crude sourcing as prices, shipping costs and geopolitical risks reshape the international oil market.
Why Venezuelan Crude Is Becoming Attractive Again
The biggest factor behind the renewed interest is pricing.
Venezuela produces large quantities of heavy, high-sulfur crude, including its flagship Merey grade. Such crude generally trades at a discount because it is more difficult to transport and requires sophisticated refinery equipment to process.
That discount has become particularly valuable for Indian refiners at a time when some alternative supplies have become more expensive.
Merey is currently trading at a discount, while Russian Urals crude has been trading at a premium before freight costs, according to the Economic Times report. The difference creates an opportunity for refiners capable of handling Venezuela’s heavier grades.
However, the headline discount does not automatically mean Venezuelan crude is cheaper after delivery. Longer shipping distances and rising tanker rates can reduce the economic advantage.
Why Reliance Is Particularly Well Positioned
Reliance Industries has an important structural advantage in this market because of its Jamnagar refining complex in Gujarat.
The Jamnagar facility is designed to process a wide range of crude grades, including heavier and high-sulfur varieties. This makes Venezuelan crude more practical for Reliance than it is for many refineries with less complex processing capabilities.
All Venezuelan cargoes currently scheduled for India are listed with Sikka as their destination, the port serving Reliance's Jamnagar refinery complex, according to the report.
Reliance's ability to process difficult crude grades is commercially significant. A refinery does not simply compare the purchase price of crude. It must also consider the cost of transportation, processing requirements and the value of the petroleum products that can ultimately be produced.
That is why a discounted heavy crude can be attractive to a highly complex refinery even when it may not be economical for a simpler facility.
Russia’s Changing Position Adds to the Shift
The rise in Venezuelan supplies is also connected with changes in India's purchases from Russia.
Russia has remained India's largest crude supplier, but its share of India's imports declined to around 35% in September, from as high as 56% in July, according to Kpler data cited by the Economic Times.
The shift comes as Russian crude has become more expensive and refiners face greater uncertainty surrounding sanctions and potential penalties. The report also notes that Russia's flagship Urals crude loaded in the Baltic has reached a wartime high.
This does not mean India is abandoning Russian oil. Instead, the changing numbers show how Indian refiners are maintaining flexibility by adjusting the mix of countries and crude grades they purchase.
For an oil-importing country, having multiple supply options can become particularly valuable when prices or geopolitical conditions change quickly.
Venezuela Has Already Returned to India’s Oil Supply Map
The October surge is part of a broader comeback for Venezuelan crude in India's import basket.
India resumed buying Venezuelan oil in February after an extended pause. Earlier in 2026, Reliance received a US general licence allowing it to purchase Venezuelan crude directly, opening the way for renewed supplies to its Jamnagar complex. Reuters subsequently reported that Reliance's US unit began purchasing Venezuelan heavy crude directly from PDVSA.
Venezuela's importance increased significantly during the middle of the year. Kpler data showed the country becoming one of India's leading crude suppliers, with Venezuelan shipments reaching hundreds of thousands of barrels per day.
In August, Venezuelan imports were reported at roughly 358,000 bpd, the highest level since 2020 at that point.
The Biggest Challenge: Heavy Crude Is Not Easy to Process
Despite the attractive pricing, Venezuelan oil cannot simply replace every other source.
Merey and other Venezuelan grades are dense and contain high levels of sulfur. Processing such crude requires sophisticated refining equipment and appropriate operating configurations.
This limits the number of Indian refineries that can process large quantities of Venezuelan crude consistently. Reliance's Jamnagar complex is therefore in a stronger position than many other domestic refiners.
This distinction is important because India's overall crude diversification is not simply about finding another country to buy oil from. It is also about finding crude grades that individual refineries can process efficiently.
What This Means for India
The resurgence of Venezuelan oil gives Indian refiners another source at a time when global crude markets remain highly sensitive to geopolitical developments.
India imports most of the crude oil it consumes, so changes in international crude prices can have wider implications for the country's trade balance, refining economics and fuel markets.
Increasing purchases from Venezuela could also reduce dependence on any single supplier at the margin. Recent Kpler data shows that India has expanded its crude sourcing to additional countries, although a relatively small number of major suppliers still account for most imports.
For Reliance, the development could provide greater flexibility in managing its crude mix. But the opportunity will depend on whether Venezuelan discounts remain large enough to compensate for freight costs and the technical challenges associated with processing heavy crude.
Will the Venezuelan Oil Surge Continue?
The October figure should be viewed as a forecast rather than a guaranteed final import number.
Kpler's Sumit Ritolia expects actual October deliveries to be closer to around 350,000 bpd, partly because some vessels may not discharge until later in the month. At least some scheduled tankers are expected to arrive near the end of October, meaning final monthly volumes could differ substantially from current projections.
Shipping costs will also be crucial. Venezuela is geographically distant from India, and higher tanker rates can quickly reduce the benefit of cheaper crude at the source.
For now, however, the message from India's oil market is clear: Venezuelan crude has moved from being a marginal supply option to an increasingly important part of the country's diversification strategy, with Reliance's Jamnagar refinery particularly well placed to take advantage of the opportunity.
The broader trend is less about one company replacing one supplier and more about Indian refiners constantly searching for the most economical combination of crude quality, price, shipping and refinery compatibility.
