{"id":1315552,"date":"2026-11-08T13:46:20","date_gmt":"2026-11-08T08:16:20","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1315552"},"modified":"2026-11-08T13:46:37","modified_gmt":"2026-11-08T08:16:37","slug":"indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/","title":{"rendered":"Indian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel"},"content":{"rendered":"\n

State-owned Indian Oil Corporation (IOC) is planning to purchase crude oil and liquefied petroleum gas (LPG) carriers as rising shipping costs and geopolitical tensions in West Asia increase pressure on India’s energy supply chain. The company’s board has approved the purchase of several vessels, with the move aimed at reducing dependence on external shipping arrangements and improving control over fuel transportation.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Indian Oil Board Approves Vessel Purchases<\/strong><\/p>\n\n\n\n

IOC Director of Finance Anuj Jain confirmed during the company’s second-quarter earnings <\/a>call that the board had approved the acquisition of a few vessels. Tenders for the proposed purchases were issued several months ago.<\/p>\n\n\n\n

The company is also exploring opportunities to build ships domestically under the government’s Make in India initiative. According to Jain, Indian oil companies need to pay greater attention to the shipping sector as geopolitical uncertainties increasingly affect international energy transportation.<\/p>\n\n\n\n

IOC is considering three approaches: optimising existing charter arrangements, purchasing its own vessels and supporting domestic shipbuilding.<\/p>\n\n\n\n

Shipping Costs Rise Amid Strait of Hormuz Disruptions<\/strong><\/p>\n\n\n\n

The proposed purchases come as disruptions around the Strait of Hormuz have pushed crude transportation costs higher. IOC currently operates three crude oil vessels and nine LPG vessels through time-charter arrangements.<\/p>\n\n\n\n

Jain said the company’s time-chartered crude carriers cost approximately $2 to $2.50 per barrel, compared with spot-market freight rates reaching $8 to $10 per barrel.<\/p>\n\n\n\n

LPG transportation costs have also increased significantly. Freight rates that normally remain around $40 per tonne have climbed to approximately $160-$180 per tonne in the spot market.<\/p>\n\n\n\n

Higher transportation expenses and war-risk insurance costs have made securing shipping capacity an important consideration for Indian refiners.<\/p>\n\n\n\n

IOC Diversifies Crude Oil Procurement<\/strong><\/p>\n\n\n\n

Alongside its shipping strategy, IOC has diversified its crude oil sourcing to reduce dependence on individual suppliers and regions.<\/p>\n\n\n\n

During the first half of FY27, Russia accounted for approximately 55% of the company’s crude requirements, while the Middle East contributed 24%. Africa supplied around 10%, Brazil 7%, the United States 2-5% and Venezuela 3-4%.<\/p>\n\n\n\n

The company has also increased its reliance on spot purchases. These accounted for approximately 87% of crude sourcing during the first half of FY27, compared with around 50% in the previous financial year.<\/p>\n\n\n\n

Higher Inventories and Improved Financial Performance<\/strong><\/p>\n\n\n\n

IOC has increased its crude inventory to approximately 39 days, compared with its usual 33-35 days. It also held around 20 days of LPG inventory and 23-25 days of petrol and diesel stocks.<\/p>\n\n\n\n

For the September quarter, the company reported a net profit of Rs 21,630 crore, compared with Rs 7,610 crore in the corresponding period last year. Its gross refining margin stood at $18.52 per barrel, while inventory gains amounted to Rs 6,948 crore.<\/p>\n\n\n\n

The proposed vessel acquisitions and domestic shipbuilding plans indicate IOC’s efforts to strengthen transportation capabilities amid continuing uncertainty in global energy markets.<\/p>\n\n\n\n

Summary<\/strong><\/p>\n\n\n\n

Indian Oil Corporation plans to purchase crude oil and LPG carriers as geopolitical tensions and Strait of Hormuz disruptions push shipping costs higher. Its board has approved vessel purchases, while the company is also exploring domestic shipbuilding. IOC is diversifying crude sourcing, increasing fuel inventories and reducing dependence on external shipping arrangements to strengthen its energy supply chain.<\/p>\n\n\n\n

Image Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

State-owned Indian Oil Corporation (IOC) is planning to purchase crude oil and liquefied petroleum gas (LPG) carriers as rising shipping costs and geopolitical tensions in West Asia increase pressure on India’s energy supply chain. The company’s board has approved the purchase of several vessels, with the move aimed at reducing dependence on external shipping arrangements […]<\/p>\n","protected":false},"author":30,"featured_media":1315558,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[5976,8847],"class_list":["post-1315552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-indian-oil","tag-ships"],"acf":[],"yoast_head":"\nIndian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel - Trak.in - Indian Business of Tech, Mobile & Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel - Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"og:description\" content=\"State-owned Indian Oil Corporation (IOC) is planning to purchase crude oil and liquefied petroleum gas (LPG) carriers as rising shipping costs and geopolitical tensions in West Asia increase pressure on India’s energy supply chain. The company’s board has approved the purchase of several vessels, with the move aimed at reducing dependence on external shipping arrangements […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"article:published_time\" content=\"2026-11-08T08:16:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-11-08T08:16:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM-1024x600.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Mohul Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mohul Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/\",\"url\":\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/\",\"name\":\"Indian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel - Trak.in - Indian Business of Tech, Mobile & Startups\",\"isPartOf\":{\"@id\":\"https:\/\/trak.in\/stories\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM.png\",\"datePublished\":\"2026-11-08T08:16:20+00:00\",\"dateModified\":\"2026-11-08T08:16:37+00:00\",\"author\":{\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/5092a7d2906e3f3c819643435477c2a7\"},\"breadcrumb\":{\"@id\":\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#primaryimage\",\"url\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM.png\",\"contentUrl\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM.png\",\"width\":1810,\"height\":1060},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/trak.in\/stories\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Indian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/trak.in\/stories\/#website\",\"url\":\"https:\/\/trak.in\/stories\/\",\"name\":\"Trak.in - Indian Business of Tech, Mobile & Startups\",\"description\":\"Trak.in is a popular Indian Business, Technology, Mobile & Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups & Social Media Space\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/trak.in\/stories\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/5092a7d2906e3f3c819643435477c2a7\",\"name\":\"Mohul Ghosh\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/66c129d83dd3f325a3b550eb1aa16891173ddfc4686361424206cd9a01311c89?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/66c129d83dd3f325a3b550eb1aa16891173ddfc4686361424206cd9a01311c89?s=96&d=mm&r=g\",\"caption\":\"Mohul Ghosh\"},\"url\":\"https:\/\/trak.in\/stories\/author\/mohul-ghosh\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Indian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel - Trak.in - Indian Business of Tech, Mobile & Startups","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/","og_locale":"en_US","og_type":"article","og_title":"Indian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel - Trak.in - Indian Business of Tech, Mobile & Startups","og_description":"State-owned Indian Oil Corporation (IOC) is planning to purchase crude oil and liquefied petroleum gas (LPG) carriers as rising shipping costs and geopolitical tensions in West Asia increase pressure on India’s energy supply chain. The company’s board has approved the purchase of several vessels, with the move aimed at reducing dependence on external shipping arrangements […]","og_url":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/","og_site_name":"Trak.in - Indian Business of Tech, Mobile & Startups","article_published_time":"2026-11-08T08:16:20+00:00","article_modified_time":"2026-11-08T08:16:37+00:00","og_image":[{"width":1024,"height":600,"url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM-1024x600.png","type":"image\/png"}],"author":"Mohul Ghosh","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Mohul Ghosh","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/","url":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/","name":"Indian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel - Trak.in - Indian Business of Tech, Mobile & Startups","isPartOf":{"@id":"https:\/\/trak.in\/stories\/#website"},"primaryImageOfPage":{"@id":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#primaryimage"},"image":{"@id":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#primaryimage"},"thumbnailUrl":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM.png","datePublished":"2026-11-08T08:16:20+00:00","dateModified":"2026-11-08T08:16:37+00:00","author":{"@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/5092a7d2906e3f3c819643435477c2a7"},"breadcrumb":{"@id":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#primaryimage","url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM.png","contentUrl":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM.png","width":1810,"height":1060},{"@type":"BreadcrumbList","@id":"https:\/\/trak.in\/stories\/indian-oil-planning-to-buy-ships-for-carrying-oil-as-freight-costs-surge-10-barrel\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/trak.in\/stories\/"},{"@type":"ListItem","position":2,"name":"Indian Oil Planning To Buy Ships For Carrying Oil As Freight Costs Surge $10\/Barrel"}]},{"@type":"WebSite","@id":"https:\/\/trak.in\/stories\/#website","url":"https:\/\/trak.in\/stories\/","name":"Trak.in - Indian Business of Tech, Mobile & Startups","description":"Trak.in is a popular Indian Business, Technology, Mobile & Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups & Social Media Space","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/trak.in\/stories\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/5092a7d2906e3f3c819643435477c2a7","name":"Mohul Ghosh","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/66c129d83dd3f325a3b550eb1aa16891173ddfc4686361424206cd9a01311c89?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/66c129d83dd3f325a3b550eb1aa16891173ddfc4686361424206cd9a01311c89?s=96&d=mm&r=g","caption":"Mohul Ghosh"},"url":"https:\/\/trak.in\/stories\/author\/mohul-ghosh\/"}]}},"jetpack_featured_media_url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/11\/Screenshot-2026-11-08-at-1.45.32-PM.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1315552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/comments?post=1315552"}],"version-history":[{"count":1,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1315552\/revisions"}],"predecessor-version":[{"id":1315559,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1315552\/revisions\/1315559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/media\/1315558"}],"wp:attachment":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/media?parent=1315552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/categories?post=1315552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/tags?post=1315552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}