IndianOil advances tanker purchases as freight surge sharpens focus on shipping security

Indian Oil Corporation (IOC) is advancing plans to acquire crude oil and liquefied petroleum gas (LPG) carriers as higher freight costs and disruptions around the Strait of Hormuz increase pressure on its supply chain.

Director of Finance Anuj Jain said during the company’s second-quarter earnings call on 31 October that the board had approved vessel purchases and tenders had been issued several months earlier. IndianOil is also discussing domestic shipbuilding opportunities under the Make in India initiative.

The company is pursuing three approaches: improving its existing mix of time and voyage charters, acquiring ships, and exploring construction in India.

Jain said IndianOil’s time-chartered fleet had helped maintain supplies and contain transport costs during the disruption. The company has three crude carriers and nine LPG vessels on time charter.

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