Reliance to stop purchasing Venezuelan oil amid US tariffs

India’s Reliance Industries, which operates the world’s largest refining complex, will halt its imports of Venezuelan oil following a 25% tariff imposed by the United States on nations buying crude from the South American nation, according to three sources familiar with the matter.

Last year, the conglomerate received approval from U.S. authorities to purchase oil from Venezuela, and it has been importing around 2 million barrels of Venezuelan crude each month, based on data from LSEG. Reliance is set to receive a Venezuelan shipment in early April, according to LSEG trade flow data.

U.S. President Donald Trump's executive order, which takes effect on April 2, imposes higher tariffs on goods imported from any country purchasing Venezuelan oil. Industry sources say Reliance will cease buying Venezuelan crude due to the tariff threat, although it is unclear whether the company will still accept the April shipment.

The tariff announcement has already caused a slowdown in the loading of Venezuelan heavy crude at the country’s main oil ports.

Reliance operates two refineries in Gujarat, with a combined processing capacity of about 1.4 million barrels of crude per day. The complex’s ability to handle cheaper, heavier crudes, such as the Merey crude from Venezuela, makes it a significant player in the global refining market.

Reliance has not responded to requests for comment on the matter.