Hindustan Petroleum Corporation Limited (HPCL) is facing challenges in securing tankers for transporting crude oil from the Persian Gulf through the Strait of Hormuz. The shortage of vessels and sudden withdrawals by some ship owners have complicated transportation logistics. These issues persist as oil supply from the Middle East is improving, with more ships passing through this strategic waterway.
Challenges in Securing Ships
V. K. Chawla, the chairman of HPCL, stated in an interview in Abu Dhabi that finding ships for the available loading dates remains difficult. He added that some ship owners are even refusing to proceed with shipments after agreeing to transport cargo. While the refinery has been able to secure crude oil from the region, arranging ships for loading from within the Persian Gulf has become a serious challenge.
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Shortage of Tankers and Impact on Costs
This shortage occurs amid an unprecedented global scarcity of tankers, which has led to increased oil transportation costs. The situation around the Strait of Hormuz is particularly challenging, where only a limited number of ship owners are willing to send vessels through this waterway amid rising maritime attacks.
Oil flows from the Middle East have increased in recent months, with more ships passing through the Strait of Hormuz, but the improvement in regional supplies has not resolved the tanker availability issue. This presents refineries with a separate challenge in arranging transportation for existing oil cargoes.
HPCL's Crude Oil Purchases from the Middle East
According to provided data, HPCL has purchased an average of about 240,000 barrels per day of Middle Eastern crude oil in 2025. This volume dropped to 57,000 barrels per day in April 2026, when conflicts severely disrupted transportation through the Strait of Hormuz. However, purchases gradually increased to 256,000 barrels per day in October as more supplies became available from the region. This improvement reflects HPCL's better access to Middle Eastern crude oil, although the tanker availability issue still complicates transportation from within the Persian Gulf.
Measures by Gulf Producers
Gulf oil producers are increasingly exporting directly from the Persian Gulf, transferring cargoes to their customers outside the Strait of Hormuz. This allows buyers to access regional supplies without needing to arrange tankers for the entire route from within the Persian Gulf.
For HPCL, the ability to secure crude oil and arrange transportation for it remains two separate challenges. Although oil supplies from the Middle East have increasingly become available, the shortage of ships willing to travel through the Strait of Hormuz continues to add complexities to the refinery's supply and delivery arrangements.
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