NEW DELHI (Reuters) – India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports after the United States announced a 25% tariff on nations buying crude from the South American nation, three sources said on Wednesday. The Indian conglomerate, which last year obtained approval from U.S. authorities to purchase oil […]
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India’s Reliance to stop buying Venezuelan oil over US tariffs, sources say
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NEW DELHI (Reuters) – India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports after the United States announced a 25% tariff on nations buying crude from the South American nation, three sources said on Wednesday.
The Indian conglomerate, which last year obtained approval from U.S. authorities to purchase oil from the sanctioned producer, imports an average of 2 million barrels of Venezuelan crude every month, according to LSEG data.
It is scheduled to receive a Venezuelan cargo in early April, LSEG trade flows data showed.
U.S. President Donald Trump’s executive order says that higher tariffs may be imposed on or after April 2 on all goods imported from any country that buys Venezuelan oil.
The three industry sources with knowledge of Reliance’s purchasing plans said the company would stop buying Venezuelan crude due to the tariff threat.
It was not immediately clear, however, if it would still take delivery of the April cargo, added one of the sources, all of whom declined to be identified as they were not authorised to speak to media.
Reliance did not respond to a Reuters request for comment.
Loading of Venezuelan heavy crude at the country’s main oil ports has already slowed this week following the tariff announcement.
Reliance’s two refineries in western Gujarat state can process about 1.4 million barrels per day of crude oil.
The complexity of those plants allows it to process cheaper and heavier crudes such as Merey from Venezuela.
(Reporting by Nidhi Verma; Editing by Joe Bavier)