Reliance to halt Venezuelan oil imports as US tariff threat looms
New Delhi: India’s Reliance Industries, which operates the world’s largest refining complex, will cease Venezuelan oil imports following the United States’ decision to impose a 25% tariff on countries purchasing crude from the South American nation, Reuters reported.
The Indian conglomerate, which last year secured US approval to buy Venezuelan oil despite sanctions, has been importing an average of 2 million barrels per month, according to LSEG data.
Trade flows data indicate that it is set to receive a Venezuelan cargo in early April, the report said.
An executive order issued by US President Donald Trump states that tariffs on goods from any country importing Venezuelan oil could rise on or after April 2.
The three industry sources, who have knowledge of Reliance’s purchasing plans, confirmed that the company would halt Venezuelan crude imports due to the tariff threat.
However, one of the sources noted that it remained unclear whether Reliance would still take delivery of the April cargo.
The announcement of the tariff has already impacted Venezuela’s oil exports, with loading of its heavy crude at key ports slowing this week.
Reliance’s two refineries in Gujarat have a combined processing capacity of approximately 1.4 million barrels per day and are designed to handle cheaper, heavier crudes like Venezuela’s Merey.
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