US Tariffs on Venezuelan Oil

US Tariffs on Venezuelan Oil: 25% Impact on India’s Energy Imports

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US Tariffs on Venezuelan Oil: The latest in a series of tariff announcements from Donald Trump, the US President, said on Monday (March 24, 2025) that he would impose a 25% tariff on all imports from countries that buy oil or gas from Venezuela. He also announced plans to impose new tariffs on the South American country.

US Tariffs on Venezuelan Oil
US Tariffs on Venezuelan Oil

US Tariffs on Venezuelan Oil

Another threat from President Donald Trump has surfaced. Now he has announced to impose a 25 percent tariff on countries buying oil and gas from Venezuela. India is also in the list of those countries that import crude oil from Venezuela.

India’s current import dependence on crude oil, including supplies from Venezuela, means that Mr Trump’s latest plans will further increase the tariff burden on the country. If this latest threat from Trump turns into a decision, it will directly impact many Indian companies, including HPCL and BPCL.

US Tariffs on Venezuelan Oil: Trump Wrote on Social Media 

Trump wrote on the Truth social network, “Venezuela is very hostile towards the US. In such a situation, if any country buys oil and gas from Venezuela, it will have to pay 25 percent tariff on trading with the US.” This decision of Trump can come into effect on 2 April.

US Tariffs on Venezuelan Oil: Venezuela is Special for India

 In December 2023 and January 2024, India was the country that bought the most oil from Venezuela. In 2024, India bought 22 million barrels of oil from Venezuela. Which is equal to 1.5 percent of India’s total crude oil. In December 2024, India bought oil from Venezuela at the rate of 1,91,600 barrels per day.

In which Reliance Industries received 1,27,000 barrels per day. At the same time, Indian Oil Corporation (IOC) and HPCL-Mittal Energy received 37,000 barrels and 28000 barrels per day respectively.

According to Commerce Ministry data, India bought oil worth $1 billion from Venezuela during April 2024 to December 2024. Which is 27% more than the oil purchased during 2023-24, which was worth $800 million. Oil purchased from Venezuela has a share of 0.93% in India’s total import bill.

If we talk about quantity, from April to December 2024, India imported a total of 1.4 billion barrels of oil. Venezuela’s share in this import is 1.05%. According to the data of the Ministry of Commerce, India bought 15.5 million barrels of oil from Venezuela.

Let us tell you, in the month of February, Indian refineries bought 1,75,000 barrels of oil per day from Venezuela. Venezuela is the 5th largest supplier for India.

Shares of These Companies Will Be Affected

  • ONGC – The company’s shares opened at Rs 244.75 today. During the day, the price of the company’s shares reached the level of Rs 240.70. During the last 6 months, the price of shares of this company has fallen by 18 %.
  • Oil India: The stock opened at Rs 403.95. The company’s shares fell by more than 3 % to Rs 383.60. The company’s share prices have fallen by 32 % in the last 6 months.
  • BPCL: The stock opened at Rs 280.45. On Tuesday, the company’s stock fell to Rs 277.10 during the day. The company’s share prices have fallen by 18 % in the last 6 months.
  • HPCL: This stock opened at the level of Rs 360.95. The company’s shares fell to the level of Rs 352.70 during the day. This stock has fallen by 13 % in the last 6 months.

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