How much oil does India buy from Venezuela?:Will importing cheaper Venezuelan oil help govt cut petrol and diesel prices in India?

Venezuelan oil is back in the limelight after recent earthquakes jolted the world’s largest oil reserves. In May 2026, the South American country became India’s third biggest oil supplier. Quality of Venezuelan oil: Venezuelan oil is generally cheaper on the global market. Venezuelan oil is very thick and sticky, like syrup. This type of oil is hard to process. However, India’s private refineries, like the Reliance factory in Jamnagar, are highly advanced and can process this thick oil easily. Condition of Venezuela’s oil infrastructure: The pipes, wells, and factories used to pump oil in Venezuela are in bad shape. Reports from ‘The Times of India’ state that decades of poor management, low funding, and political issues have broken down their systems. While they are trying to rebuild, unexpected issues like electricity power cuts still slow down their oil production. The earthquake that struck Venezuela had not only caused loss of life and property, but has also dealt a major blow to the country’s economy. Immediately after the earthquake, operations at the country’s refinery and surrounding oil distribution centers were halted. Additionally, airports, metro services, and schools across the country were closed. Internet connectivity and water supply in many places were affected. Leakage occurred in a refinery tank The epicenter of both earthquakes was near the city of Moron, about 290km west of the capital Caracas, which is one of Venezuela’s major oil and industrial centers. Economic commercial impact: Heavy Damage to Infrastructure: The country’s main Simn Bolvar International Airport and major ports were closed. Banking services and digital transactions were completely stopped due to the collapse of power and internet grids. Supply Chain Affected: The collapse of roads and bridges had completely disrupted the logistics and supply chain of essential goods within the country. Impact on Crude Oil Market: Major oil refineries and pipelines located near the earthquake’s epicenter were shut down as a precautionary measure. Due to the earthquake’s epicenter being directly near this oil infrastructure area, concerns had increased about supply disruptions in the global crude oil market. According to experts, if oil production and exports remain halted for an extended period, crude oil prices in the global market could rise. Impact on Indian markets crude oil If Brent crude prices increase in the international market due to the Venezuela crisis, India’s import bill may rise, which will put pressure on domestic petrol, diesel and logistics costs. Additionally, the operations of Indian companies like ONGC that have invested in Venezuela’s oil sector may also be affected. Which companies import Venezuelan oil? Two major Indian entities are leading the charge: Reliance Industries: Reports from ‘Reuters’ show that Reliance is the top buyer. The company signed big deals to bring Venezuelan oil directly to India. ONGC Videsh, Indian Oil, and Oil India: According to ‘The Economic Times,’ India’s government-owned company, ONGC, is trying to buy and take total control of two major oil fields in Venezuela called San Cristobal and Carabobo-1. Indian Oil and Oil India also own smaller pieces of these fields. Will importing cheaper Venezuelan oil lower petrol and diesel prices in India? According to pricing data rules from India’s Petroleum Planning Analysis Cell (PPAC), the prices you pay at the local petrol pump depend mostly on government taxes and global average oil costs. While buying cheaper oil from Venezuela helps companies like Reliance save money, it does not mean the government will automatically lower the price of fuel dispensed at petrol pumps. Oil price forecast: US-based investment bank Goldman Sachs pegs Brent crude oil prices at $80 per barrel for the fourth quarter of 2026. It also forecasted average Brent prices of $75 a barrel for 2027. Manav Modi, Commodities Analyst at Motilal Oswal Financial Services also said to ANI that he expects crude prices to stay capped near $80 if US-Iran truce holds and Hormuz fully reopens. How much oil does India buy from Venezuela? India buys about 4,20,000 barrels of oil every single day. Data from the energy tracking company Kpler shows that India has drastically increased its oil shopping from Venezuela recently. In April, India bought 2,83,000 barrels per day. In May, that number jumped to around 4,17,000 to 4,20,000 barrels per day. What is Venezuela’s share in India’s oil supply? Venezuela supplies about 8.5% of India’s total oil, making it India’s 3rd-largest supplier. According to a market report by Angel One, India imports a total of 4.9 million (49 lakh) barrels of oil per day from all over the world. Venezuela’s share of that total basket is roughly 8.5%. A report by the Hindustan Times notes that because of recent shipping troubles in the West Asia, India started buying much more oil from Venezuela. This huge jump made Venezuela the 3rd-largest oil supplier to India, right behind Russia and the United Arab Emirates (UAE).