HPCL Struggles To Book Tankers For Hormuz Crude

Hindustan Petroleum Corporation Ltd (HPCL) is encountering challenges in securing tankers to transport crude oil from the Persian Gulf through the Strait of Hormuz, despite a recovery in regional crude supplies, according to media reports. The difficulties are exacerbated by vessel shortages and last-minute cancellations by shipowners, even as other crude supplies rebound.

HPCL's Chairman Vikas Kaushal noted in an interview that procuring ships for available loading dates remains a significant issue, with some shipowners backing out even after committing to transport cargoes. The refiner has managed to secure Middle Eastern crude, but arranging vessels to lift cargoes from within the Gulf has become a major operational hurdle.

The global tanker shortage has driven up the cost of transporting crude and particularly complicates operations around the Strait of Hormuz, where a small number of shipowners are willing to navigate the waterway due to heightened pirate attacks. While oil production from the Middle East has risen recently, with more vessels crossing the Strait of Hormuz, the recovery in supplies has not alleviated the challenge of securing vessels, leaving refiners like HPCL grappling with the additional task of transporting the available crude.

HPCL's purchases of Middle Eastern crude averaged around 2,40,000 barrels per day in 2025, dipping to 57,000 barrels per day in April 2026 due to the conflict disrupting shipping, before recovering to about 256,000 barrels per day by October as more regional supplies became available. Traditionally, HPCL sourced most of its Middle Eastern crude from within the Gulf, but has increasingly turned to the spot market and received deliveries directly at its refineries, according to Kaushal.

Gulf oil producers have also started exporting their products directly from within the Persian Gulf to avoid the complexities of securing vessels for the entire journey. For HPCL, while crude procurement from the Middle East has become more attainable, the limited availability of vessels willing to navigate the Strait of Hormuz continues to pose a significant obstacle to its procurement and delivery operations.