{
  "id": 18887316,
  "title": "Indian Oil plans to buy its own oil, LPG ships as freight costs surge 4 times",
  "url": "https://urgent.news/2026/11/08/indian-oil-plans-to-buy-its-own-oil-lpg-ships-as-freight-costs-surge",
  "topic": "culture",
  "section": "Culture",
  "published": "2026-11-08T07:26:52.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/indian-oil-plans-to-buy-its-own-oil-lpg-ships-as-freight-costs-surge-4-times/articleshow/135653667.cms"
  },
  "original_language": "en",
  "account": "Rising shipping costs have prompted Indian Oil Corporation (IOC) to take greater control over the transportation of its crude oil and liquefied petroleum gas (LPG) to refineries. The company plans to purchase its own carriers and explore shipbuilding opportunities in India under the government's Make in India initiative. IOC's board approved the purchase of a few vessels, with tenders issued for the proposed acquisitions.\n\nThe cost of transporting crude oil and LPG has surged significantly due to disruptions in the Strait of Hormuz caused by geopolitical tensions. This has made shipping arrangements a crucial aspect of IOC's strategy. Under time-charter arrangements, the company currently has three crude oil carriers and nine LPG vessels.\n\nThe difference between chartered rates and spot-market rates has been stark, with IOC paying $2-2.50 per barrel for time-chartered crude carriers compared to rates of $8-10 per barrel on the spot market. For LPG transportation, freight rates have jumped from $40 per tonne to $160-180 per tonne in the spot market.\n\nIOC has diversified its crude purchases to mitigate risks, with Russian crude accounting for 55% of its requirements, Middle Eastern countries 24%, and Africa 10%. Brazil, the United States, and Venezuela supply the remaining 7%, 2-5%, and 3-4%, respectively. The company has also increased reliance on spot purchases, which now account for 87% of its crude sourcing, up from approximately 50% in the previous financial year.\n\nDespite the challenges, IOC has maintained optimal refinery operations and built up inventories of crude oil, LPG, and petrol and diesel, allowing it to report a profit of Rs 21,630 crore in the September quarter. The company remains uncertain about geopolitical developments' impact on its operations, particularly in procurement, freight costs, and marketing margins.",
  "summary": "To bolster its shipping logistics, Indian Oil Corporation is planning to acquire its own carriers and is looking into shipbuilding ventures within India as part of the Make in India initiative. The rise in geopolitical tensions has led to higher shipping costs, necessitating these strategic changes. IOC has also diversified its crude sourcing to minimize supply disruptions and leverage market…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}