The Indian refinery Hindustan Petroleum Corp reported problems with chartering tankers for transit through the Strait of Hormuz to procure cargo, despite an increase in the number of vessels crossing the strait and an increase in crude oil supplies from the region.
HPCL Chairman Vikas Kaushal stated in an interview in Abu Dhabi this week that vessel availability and sudden cancellations by shipowners are creating obstacles to securing raw materials from the Persian Gulf. He noted that the company's success in transits through Hormuz varies, although supplies can still be sourced from outside this choke point.
Kaushal emphasized that the main issue is vessel chartering. He added that even when there is raw material available for purchase from the Persian Gulf, it is sometimes difficult to find ships matching the available loading dates. Sometimes a vessel is contracted, and then the shipowner cancels the commitment at the last minute.
Oil flows from the Middle East have significantly increased in recent months, returning to pre-war levels thanks to the increased number of vessels crossing Hormuz, even amid intensified maritime attacks by Iran. Higher supply volumes are also linked to an unprecedented shortage of ships, which has led to a sharp rise in the cost of transporting barrels globally. This situation is exacerbated in Hormuz, where a relatively small group of shipowners is willing to traverse this waterway.
Gulf producers have begun organizing exports independently, delivering cargo directly to clients outside the waterway.
According to data provider Kpler, in 2025, HPCL purchased about 240,000 barrels per day of Middle Eastern oil. This figure dropped to 57,000 barrels per day in April, when the war almost completely closed Hormuz, but last month it rose to an average of 256,000 barrels per day due to the appearance of more supplies from the region.
Kaushal also reported last month that while the Mumbai-based refinery usually purchased most of these acquisitions within the Gulf, it has recently been increasingly shifting to the spot market and accepting deliveries directly at its plants.
