New Delhi: Indian Oil Corporation (IOC), India’s largest oil refiner, has significantly increased its crude oil purchases from the spot market to compensate for disruptions in Middle Eastern supplies, the company’s Finance Director Anuj Jain said during an analyst meeting following the release of its June quarter earnings on Saturday.

Jain said the company’s reliance on spot purchases has risen sharply, with spot procurement increasing from around 50% to nearly 84% of total crude purchases.

“Our spot volume jumped from 50% to almost 84%, and the situation is very, very dynamic. We keep track of developments on a day-to-day basis and try to optimize our crude sourcing,” Jain said.

According to the company, Indian refiners have increasingly turned to spot markets due to supply disruptions affecting traditional shipping routes through the Strait of Hormuz and the Red Sea.

IOC continues to depend heavily on spot purchases of Russian crude to meet refinery requirements while also diversifying its supply sources.

To ensure uninterrupted operations, the refiner has stepped up crude imports from producers in West Africa and Latin America, helping offset reduced supplies from the Middle East.

Indian Oil Corporation, together with its subsidiary Chennai Petroleum Corporation, accounts for nearly one-third of India’s 5.2 million barrels-per-day refining capacity, making it one of the country’s most influential energy companies.

Looking ahead, IOC plans to process 1.7 million barrels of crude oil per day at its directly owned refineries during the 2027-28 financial year. The company is also expanding capacity at several refining units, with the upgrades expected to be completed by the end of this year.

The increased reliance on spot purchases highlights the company’s efforts to maintain a stable crude supply while adapting to rapidly changing conditions in global energy markets.