Jamnagar Refinery’s Capabilities Attract Washington’s Attention

The United States is encouraging India to increase its imports of Venezuelan crude oil, particularly through Reliance Industries Ltd (RIL), which operates the world’s largest single-site refining complex in Jamnagar, Gujarat. US Secretary of State Marco Rubio visited the refinery on October 21, 2026, to discuss expanding energy trade with Reliance’s leadership.

Rubio described India as a “refining superpower” and highlighted its ability to process Venezuela’s heavy crude oil. The Jamnagar complex has a combined crude-processing capacity of approximately 1.4 million barrels per day, making it particularly suitable for processing such oil.

Washington hopes that increased purchases by countries such as India will help Venezuela expand its oil market after years of sanctions. The US is also encouraging India to reduce its dependence on Russian crude oil. However, experts have cautioned New Delhi against treating these two objectives as interconnected decisions.

High Transportation Costs Limit Further Imports

Despite the technical advantages, increasing Venezuelan oil imports presents significant commercial challenges. Venezuela’s Merey crude is extremely heavy and contains high levels of sulphur, limiting the number of Indian refineries capable of processing it efficiently.

Energy analyst Natalia Katona noted that although Venezuelan crude is offered at a discount of around $25 per barrel compared with Brent crude, shipping costs to India’s western coast can reach approximately $35 per barrel. These expenses can eliminate the price advantage and make imports less competitive.

India has already increased its Venezuelan oil purchases significantly, reaching approximately 350,000 barrels per day in August 2026 before declining to around 200,000 barrels per day in September.

Reliance accounted for 74.3% of India’s Venezuelan crude imports by value between April and August 2026. Other buyers included Indian Oil, Hindustan Petroleum and Nayara Energy.

Meanwhile, the gradual return of West Asian oil supplies, which benefit from shorter shipping routes, could intensify competition. Ultimately, Indian refiners will decide purchases based on price, quality, transportation expenses and supply reliability rather than political preferences alone.