Reliance halts Venezuelan oil imports after US tariff

New Delhi: Reliance Industries Ltd has put a stop to further purchases of Venezuelan crude following US President Donald Trump’s decision to impose a 25 per cent tariff on countries importing oil from the South American nation.

India’s largest private refiner is still set to receive a cargo of Merey crude currently en route from Venezuela, but future shipments have been suspended, according to sources familiar with the matter. These individuals, who requested anonymity, cited the sensitivity of the situation. A spokesperson for Reliance did not respond to requests for comment.

Reliance had resumed importing Venezuelan crude last year after securing US waivers, with data from Kpler showing that the company has taken 6.5 million barrels since the beginning of the year. However, Trump’s executive order, issued on Monday, will impose secondary tariffs on any nation continuing such imports starting April 2.

Other Indian refiners have occasionally acquired Venezuelan oil through intermediaries rather than directly from the country, but Russian crude remains a preferred option due to its affordability and accessibility.

China, the top buyer of Venezuelan crude, accounted for over 40 per cent of its oil exports in February. While Chinese private refiners may temporarily slow purchases, sanctioned oil flows are expected to persist.