Red Sea Crisis: OMCs Activate Contingency Plans, Weigh Suez Canal And Alternate Routes

Indian oil marketing companies (OMCs) have activated contingency plans as the Red Sea crisis threatens crude supply routes, sources told NDTV Profit.

State-run refiners are evaluating alternative shipping routes to reduce reliance on vulnerable passages, with the Suez Canal route via Europe among the options being actively considered.

The move follows the closure of the Bab el-Mandeb Strait, which has disrupted supplies from Saudi Arabia. Saudi Arabia was India's third-largest crude supplier in June.

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Sources said refiners are assessing freight costs and transit times before making fresh crude purchases as they weigh alternative routes.

Separately, Bharat Petroleum Corp. Ltd. (BPCL) said it has secured crude supplies until August and has started sourcing cargoes for September.

The company cautioned that supplies could be affected if disruptions persist, adding that it is difficult to predict how the situation will evolve beyond September.

BPCL also said discounts on Russian crude have largely disappeared amid recent market developments.

The company expects greater clarity on September pricing and discount trends over the next week.

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Source: NDTV Trending