Indian Refinery Throughput Rose in June Despite Falling Crude Imports

India's crude oil refinery throughput edged higher in June, rising 1% from the previous month even as overall crude imports declined, according to provisional government data. The increase suggests refiners may have processed crude from inventories amid emerging disruptions to global shipping routes.

By the Numbers

Refineries in India processed 5.44 million barrels per day (bpd) of crude oil in June, equivalent to 22.26 million metric tons. This marks an increase from May's throughput of 5.21 million bpd, or 22.05 million metric tons.

The processing rate for June 2026 was unchanged from the same period a year earlier, when throughput also stood at 5.44 million bpd, indicating stable year-over-year demand.

Imports Tell a Different Story

In a notable contrast to the rise in refinery activity, India's crude oil imports fell sharply in June. Government data showed that imports dropped by more than 12% compared to May, totaling 19.59 million metric tons.

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The divergence between rising throughput and falling imports suggests that refiners likely drew down existing crude stockpiles to maintain or increase their processing levels during the month.

Geopolitical Headwinds Mount

Recent disruptions in key shipping lanes are adding pressure to India's energy supply chain. These incidents highlight the growing risks for importers in the region:

• Three tankers carrying over 95,000 metric tons of Saudi crude destined for India reportedly turned back from the Red Sea following a naval blockade imposed by Yemen’s Houthi militia.
• Indian Oil Corp (IOC) cancelled a planned lifting of Iraqi oil from the Basrah Oil Terminal, citing increased risks to vessels in the Strait of Hormuz.
• Mangalore Refinery and Petrochemicals Ltd (MRPL) also cancelled a scheduled oil collection from Iraq, according to the company.