Business · Energy & Commodities · 1 hr ago
Venezuelan crude may boost Reliance’s refining margins
Reliance Industries is increasing its purchases of Venezuelan crude oil, with shipments in October expected to reach their highest level in seven years.
The oil is heavy and contains more sulphur, so many refineries find it difficult to process.
Reliance’s Jamnagar refinery in Gujarat is equipped to handle it, and the crude is available at a discount.
Analysts say this could help Reliance earn about $3 more per barrel in refining margins than state-run Indian refiners.
Shipping the oil from Venezuela costs more than bringing it from Russia or West Asia, but the potential margin gain may outweigh that expense.
India’s trade in Venezuelan oil resumed in April after years of limited shipments linked to US sanctions and falling Venezuelan production.
The October volume is an early estimate and could change if cargoes are delayed.
Reliance Industries is expected to increase Venezuelan crude purchases in October, potentially boosting margins at its Jamnagar refinery.
Yes Securities estimates that processing the crude could give Reliance a sustainable $3-per-barrel margin premium over domestic public-sector refiners.
Kpler projects Reliance will receive about 370,000 barrels per day of Venezuelan oil in October, though shipments could slip into November.
India’s oil trade with Venezuela resumed in April after a long hiatus, and Reliance accounts for most of the shipments.
- Who
- Reliance Industries, which operates the Jamnagar refinery.
- What
- Increased processing of Venezuelan crude may boost Reliance’s refining margins.
- When
- Purchases are expected to rise in October 2026.
- Where
- The crude is from Venezuela and is processed at Reliance’s Jamnagar refinery in Gujarat, India.
- Why
- Reliance’s refinery can process discounted, heavy Venezuelan crude profitably, potentially giving it an advantage over domestic peers.
This story does not have two clearly opposing sides.
India’s oil trade with Venezuela resumed after a long hiatus.
Reliance was expected to ramp up Venezuelan crude purchases, with Kpler projecting receipts of about 370,000 barrels per day.
- Estimated margin premium
- $3 per barrel over domestic public-sector refiners
- Projected October receipts
- About 370,000 barrels per day
- Refinery location
- Jamnagar, Gujarat, India
- Trade resumed
- April 2026
What people are saying
The key point is that Venezuelan crude has returned as a meaningful part of India's crude basket in 2026 after being largely absent in recent years
Flows accelerated particularly from April onwards.
RIL’s historical GRM premium over domestic peers was fundamentally anchored by deeply discounted Venezuelan heavy crude, world-scale deep-conversion capability, and integrated captive logistics
Sources
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