October 22, 2026: Indian Oil Corporation (IOC), India’s largest state-owned refiner, is reportedly planning to reduce crude oil imports under term contracts in 2027 and has paused plans to purchase liquefied petroleum gas (LPG) carriers, according to the supplied market update. The reported changes could affect the company’s procurement and shipping arrangements, although the reasons, volumes and duration of the pause have not been independently confirmed through an official company announcement.

The reported development comes as Indian refiners reassess supply arrangements and shipping costs amid changing international energy trade patterns. In July, Reuters reported that Indian Oil was exploring the acquisition of a 50% stake in very large gas carriers (VLGCs) as the company prepared for increased US LPG imports from 2027.

Crude procurement strategy under review
Term contracts allow refiners to secure supplies from producers over an agreed period, providing a degree of predictability in procurement. Adjusting volumes under such arrangements can help refiners respond to changes in demand, inventories, prices and the availability of alternative supplies.

Indian Oil has previously used flexibility within term contracts to manage fluctuations in consumption. In a 2020 interview published by the company, then-chairman Sanjiv Singh said its crude contracts included fixed and optional volumes, allowing the refiner to respond to changing demand.However, the latest reported plan does not establish whether the potential reduction would involve optional quantities, specific suppliers or a broader change in the company's crude sourcing strategy. Indian Oil has not been verified as having publicly confirmed these details.

(Source: Business Upturn)