Hindustan Petroleum Corporation Limited (HPCL), one of India’s leading state-owned oil refiners, is facing difficulties securing tankers to transport crude oil from the Persian Gulf through the Strait of Hormuz, despite a recent recovery in oil flows from the region.
HPCL Chairman Vikas Kaushal said that limited vessel availability and last-minute cancellations by shipowners are disrupting the company’s efforts to lift crude cargoes from inside the Persian Gulf. While the company has managed some successful transits through the strategically important waterway, its ability to secure vessels for scheduled loading dates remains uncertain.
“The main challenge has been hiring of ships. Even if we have crude available for purchase from the Persian Gulf, sometimes finding vessels for the available loading dates is a challenge,” Kaushal said in an interview in Abu Dhabi. He added that shipowners sometimes withdraw from contracted voyages at the last minute, creating further logistical difficulties.
Oil shipments from the Middle East have recovered in recent months, approaching pre-war levels as more vessels resume crossings through the Strait of Hormuz, despite heightened maritime security risks and attacks attributed to Iran. However, the recovery in cargo movements is taking place amid a severe global shortage of vessels, pushing tanker freight rates significantly higher.
The situation is particularly challenging in the Strait of Hormuz, where only a limited number of shipowners are willing to undertake voyages through the high-risk waterway. In response, some Gulf oil producers have been using their own vessels to shuttle crude exports to locations outside the strait, where cargoes are subsequently transferred to buyers.
According to data from analytics firm Kpler, HPCL purchased approximately 240,000 barrels per day of Middle Eastern crude in 2025. Its purchases declined sharply to around 57,000 barrels per day in April 2026, when the conflict severely disrupted shipping through Hormuz. However, imports recovered to an average of 256,000 barrels per day last month as regional supplies became more accessible.
Traditionally, the Mumbai-based refiner sourced most of its Middle Eastern crude cargoes from loading points inside the Persian Gulf. However, it has increasingly turned to the spot market and is arranging deliveries directly to its refineries, adapting its procurement and shipping strategy to the evolving maritime environment.
The challenges faced by HPCL highlight how vessel availability, rising freight costs and maritime security risks continue to influence India’s crude oil procurement, even as shipments through one of the world’s most critical energy trade corridors gradually recover.