What is crude oil import logistics in India?

Specialized infrastructure and services for receiving, storing, blending, certifying, and distributing crude oil from international tankers to domestic refineries. With Russian crude now 15–20% of India's 210 million tonne annual imports (2025), demand for localized logistics hubs near ports like Mangalore and Paradip has surged. Operators handle 2–3 lakh barrel volumes per shipment.

How much does it cost to start a crude logistics business in India?

₹80–150 crore for greenfield: storage tanks (₹60–100 cr), pipeline/transport equipment (₹15–30 cr), regulatory approval (₹2–5 cr), working capital (₹3–15 cr). Asset-light lease model: ₹5–15 crore capex. ROI timeline: 3–5 years at full capacity.

Is crude oil logistics profitable in India?

Yes. Storage margins: ₹40–60/barrel/day = ₹2.4–10.8 crore/month (2–3 lakh barrel capacity). Transport/pipeline: ₹150–250/tonne = ₹75–250 crore/month (50–100k tonnes). Blending & certification: ₹100–200/tonne = ₹5–15 crore/month. Combined EBITDA: 25–35% at 70% utilization (industry norm: 60–80%).

What regulations apply to crude logistics in India?

Petroleum Act 1934 (storage licensing); PESO Rules 2005 (tank design, safety, inspection); Oil Industry Safety Rules 1986 (operations); Coastal Regulation Zone approval (port sites); GST 5% on logistics; Customs exceptions for Russian crude; ₹20–40 crore liability insurance mandatory. Ministry of Petroleum registration required as crude trader/distributor.

Russian Crude Oil Logistics India 2026 — Business Guide

AI SummaryRussia's crude oil diversion to India (driven by Western sanctions) has created a ₹45,000–60,000 crore annual logistics market. As of March 2026, tankers carrying 7.7 lakh to 2.6 lakh barrel shipments are arriving at Mangalore and other Indian ports—rates previously bound for China. Entrepreneurs with port-adjacent land, tank infrastructure, or logistics networks near Mangalore, Cochin, and Paradip can capture storage (₹2.4–10.8 crore/month), transport (₹75–250 crore/month), and certification margins. MBAs, infrastructure investors, and petroleum engineers should pursue this by Q3 2026, as supply routes are still consolidating.