Indian refiners and oil marketing companies face a sharp rise in crude procurement costs as disruptions tied to fighting in the Middle East tighten the availability of physical cargoes. Several outlets report that some refiners bid for prompt shipments at steep premiums, with prices in some cases reaching around $150 per barrel for cargoes that can arrive on time.
The higher costs are linked to delays to scheduled deliveries and reduced flow across key transit routes, which shifts more buyers toward the spot market. One report also cites the shutdown of Saudi Arabia’s East–West pipeline, which limits how crude can be moved to export terminals even if it does not remove the same volumes from global supply. Across the outlets, the common theme is that the problem centers on securing replacement barrels at a premium rather than an immediate lack of crude.
The reports say some firms are paying roughly 35–40% more than benchmark levels in recent weeks, with crude purchase costs rising to about $120–130 per barrel versus Brent around $105–109. Competition for available barrels increases premiums charged by traders, while alternative sourcing from Russia and other regions can raise freight and insurance costs amid lower global inventories.
