Business · Energy & Commodities · 11 hrs ago
Indian Oil plans to buy crude and LPG ships amid shipping disruptions
Indian Oil Corporation plans to buy crude and LPG ships as shipping disruptions near the Strait of Hormuz push up freight costs.
The state-owned company is India’s largest oil refiner and depends on ships to bring in crude oil and liquefied petroleum gas.
Its board has approved buying a few vessels, and tenders have already been issued.
The company is also exploring building ships in India under the government’s Make in India initiative.
Higher freight and insurance costs make reliable shipping capacity more important, while owned ships could give IOC more control over deliveries.
IOC is also diversifying where it buys crude and has increased its inventories to about 39 days of crude supply, up from its usual 33 to 35 days.
The company will assess ship ownership alongside its existing charter arrangements, but no purchase timeline is stated.
Indian Oil Corporation plans to buy crude oil and liquefied petroleum gas carriers as shipping disruptions near the Strait of Hormuz raise freight costs.
The company’s board has approved the purchase of a few vessels, and tenders were issued several months ago, Finance Director Anuj Jain said.
IOC is also exploring whether to build ships in India under the government’s Make in India initiative.
The company currently has three crude oil vessels and nine LPG vessels on time charter.
IOC said it had increased crude inventories to about 39 days, from its usual 33-35 days.
- Who
- Indian Oil Corporation, India’s state-owned oil refiner.
- What
- IOC plans to buy crude oil and LPG carriers. It is also exploring shipbuilding in India.
- When
- The plans were reported on November 8, 2026. Tenders were issued several months earlier.
- Where
- Near the Strait of Hormuz, where shipping disruptions have raised freight costs; IOC is exploring building ships in India.
- Why
- Disruptions and higher freight costs have increased the importance of securing shipping capacity and strengthening IOC’s energy supply chain.
This story does not have two clearly opposing sides.
US-Iran hostilities escalated, followed by a sharp rise in oil prices.
Indian basket crude averaged about $120 per barrel, Jain said.
- Approved purchase
- IOC’s board approved buying a few vessels
- Current time-chartered fleet
- 3 crude oil vessels and 9 LPG vessels
- Crude inventory
- About 39 days, compared with the usual 33-35 days
- Spot crude sourcing
- About 87% in the first half of FY27, compared with around 50% in the previous financial year
- LPG spot freight
- $160-180 per tonne, compared with a usual rate of about $40 per tonne
2 sources
What people are saying
The country needs oil sector companies to focus more on the shipping area now,