Indian Oil Corporation Receives Major Oil Shipment
On March 12, 2026, two oil tankers carrying roughly 3 million barrels of West Asian oil arrived in India, marking a significant boost in the country’s energy supplies. The delivery comes at a time when India is negotiating with Iran for the safe passage of vessels headed to its ports.
One of the tankers, the Liberia-flagged Shenlong, is transporting approximately 1 million barrels of Saudi Arabian crude oil, while the other is an India-flagged Very Large Crude Carrier (VLCC) carrying around 2 million barrels of crude from Iraq.
The arrival of these tankers has raised hopes for more stable energy supplies to India, which relies on imports for around 60% of its liquefied petroleum gas (LPG) requirement, with 90% of these imports transiting through the Strait of Hormuz.
Randhir Jaiswal, the External Affairs Minister of India, noted that he and Iran’s Foreign Minister have had three conversations recently regarding shipping safety and energy security. He emphasized that the objective of these diplomatic engagements is to keep the sea route open for Indian vessels, ensuring that shipments of crude oil and LPG continue without major disruption.
However, disruptions linked to the ongoing conflict involving the US, Israel, and Iran, as well as instability around the Strait of Hormuz, have triggered a shortage of commercial LPG in India. This situation has had a notable impact on the hospitality sector, which relies heavily on stable LPG supplies.
On the stock market, Indian Oil Corporation (IOC) recorded a total traded volume of 56,34,938 shares on the same day. The stock opened at ₹157.40, down 2.01% from the previous close of ₹160.63, with the last traded price at ₹157.20, reflecting a day’s loss of 1.43%. IOC currently holds a market capitalization of ₹2,26,928 crores.
Details remain unconfirmed regarding the exact permission status from Iran for the two oil tankers to cross the Strait of Hormuz. Additionally, the long-term implications of the current disruptions in LPG supply remain uncertain.
As India navigates these challenges, Prime Minister Modi has reportedly stressed that the issues stem from global developments and are not unique to India, assuring that the government is prepared to handle any disruptions effectively.
