Indian Oil Corporation (IOC) is preparing to buy vessels as shipping disruptions near the Strait of Hormuz coincided with higher freight and war-risk insurance costs, Director of Finance Anuj Jain said on Oct. 31.
Jain said the board had authorized buying “a few vessels” and that tenders had gone out months earlier. NDTV Profit and a Press Trust of India report carried by Business Standard described the planned purchases as crude oil and LPG ships. IOC’s call record left vessel types unspecified and gave no count, acquisition cost, shipyard or delivery timetable.
Jain said IOC was reassessing the balance between time and voyage charters while discussing shipbuilding in India with stakeholders. At the time of the call, the company had three crude oil vessels and nine LPG vessels on time charter. He said those ships helped IOC manage supplies and costs during the shipping disruption.
Jain estimated that crude freight under IOC’s time charters was generally about $2 to $2.50 per barrel, compared with spot rates that reached $8 to $10 per barrel. For LPG, he cited a typical rate of about $40 per metric ton and spot rates of $160 to $180 per metric ton at the time. The call did not break out the routes or contract terms behind those comparisons.
IOC said spot purchases supplied about 87% of its crude in the first half of fiscal 2026-27, compared with about 50% in the previous financial year. Jain said IOC had increased imports from Russia, Venezuela, Brazil and African countries to keep refinery operations on plan. The company said the Indian basket averaged about $120 a barrel in October 2026, after staying above $100 for most of the first quarter of fiscal 2026-27.
In its 2025-26 annual report, IOC separately described a partnership with Shipping Corporation of India and other parties to establish shared vessel ownership and operations, citing energy security and supply reliability. The report did not say whether that arrangement is linked to the new tenders. Jain gave no date for a tender award.
