HPCL Faces Tanker Shortage Amid Rising Oil Flows from Strait of Hormuz

Hindustan Petroleum Corporation Limited (HPCL) is currently facing significant challenges in securing tankers to transport [crude](/topic/crude-oil) oil through the strategically vital Strait of Hormuz. This situation arises despite Iran's recent decision to ease transit restrictions for vessels from four countries, including India and China. According to HPCL Chairman Vikas Kaushal, the company is grappling with limited vessel availability and frequent last-minute cancellations, which are severely disrupting shipping arrangements amid a backdrop of increasing oil flows from the region.

In an interview conducted in Abu Dhabi, Kaushal emphasized the difficulties HPCL encounters in arranging for tankers, stating, "The main challenge has been hiring of ships. Even if we have crude available for purchase from the Persian Gulf, sometimes finding vessels for the available loading dates is a challenge." He elaborated that contracts can fall through at the last moment, complicating logistics further.

The situation is particularly pressing as oil flows from the Middle East have surged in recent months, returning to pre-war levels. More vessels are navigating the Strait of Hormuz, which is crucial for global oil supply, yet the severe shortage of tankers has driven up transportation costs worldwide. The Strait of Hormuz, a narrow waterway that handles about one-fifth of the world’s oil supplies, has seen only a limited number of shipowners willing to send their vessels through due to ongoing geopolitical tensions.

Data from Kpler indicates that HPCL purchased approximately 240,000 barrels of Middle Eastern oil per day in 2025. However, this figure plummeted to just 57,000 barrels per day in April 2026, following a joint US-Israeli operation against Iran that led to the closure of the Strait of Hormuz. Fortunately for HPCL, purchases rebounded to an average of 256,000 barrels per day last month as more supplies from the region became available, showcasing the company's resilience in adapting to market conditions.

Historically, HPCL has sourced most of its crude oil from within the Gulf region. However, the current challenges have compelled the company to increasingly turn to the spot market, arranging for direct deliveries to its refineries. This shift reflects a broader trend in the industry as companies navigate the complexities of securing reliable oil supplies amid geopolitical instability.

In a significant development, Iran has announced exemptions from Strait of Hormuz transit restrictions for vessels from four countries: India, China, Iraq, and Qatar. Amir Hayat Moqaddam, Deputy Chairman of the Iranian [Parliament](/topic/parliament-of-india)’s National Security and Foreign Policy Committee, stated, "We have currently exempted four countries from transit restrictions in the Strait of Hormuz. Ships from these countries pass freely, and the Americans do not intercept them either." This move is seen as a strategic effort by Iran to bolster its oil exports while navigating the complexities of international relations.

The exemptions were granted based on mutual interests and specific considerations, indicating Iran's intent to maintain trade relationships with these nations despite ongoing tensions with the United States. This development could potentially alleviate some of the shipping challenges faced by HPCL, provided that the company can secure the necessary tankers.

The shipping difficulties for HPCL occur against a backdrop of renewed fears of escalating conflict in the region. US President Donald Trump has kept the possibility of fresh military action against Tehran open, while Iran has warned that any further US attacks would trigger a forceful response. Iran's Supreme Leader Mojtaba Khamenei has stated that any threat against the country would be met with an immediate and wide-ranging response, further complicating the operational landscape for companies like HPCL.

As tensions continue to simmer, the implications for global oil markets are significant. The rising costs of transporting crude, coupled with the uncertainty surrounding shipping routes, could lead to increased prices at the pump for consumers. Additionally, companies reliant on Middle Eastern oil must navigate these challenges carefully to ensure a steady supply of crude.

The current situation underscores the complexities of oil transport in a geopolitically charged environment. HPCL's struggles to secure tankers highlight the broader challenges faced by the oil industry as it adapts to changing market dynamics and geopolitical realities. As the company continues to seek solutions to its shipping woes, the global oil market will be watching closely to see how these developments unfold in the coming months.