Rubio’s Venezuelan Oil Push: Why India Can’t Buy Much More

US Secretary of State Marco Rubio visited Reliance’s Jamnagar refinery and wants India to import more Venezuelan crude, especially through Reliance. There are limits to how much more India can take.

When a US Secretary of State flies to a refinery in Gujarat, the message is not subtle. Marco Rubio toured Reliance Industries’ Jamnagar complex on Wednesday, October 21, after meeting Indian refiners in Mumbai the day before. His message was that Washington would like India to process more Venezuelan oil.

The push makes sense on paper. In practice, there are real limits on how much more India can buy.

What Rubio said

Rubio said Reliance has the capability to refine the heavy crude produced in the Western Hemisphere, including from Venezuela, and that he expected it to come up in the discussions. He did not name a target volume or a specific investment commitment, saying the details of any energy request would involve the US Department of Energy. One report says he also hinted that Reliance could take part in producing oil inside Venezuela, but that comes from a single outlet.

Why Jamnagar

Jamnagar is the world’s largest single-site refining complex, with a combined capacity of about 1.4 million barrels per day. It is built to handle dirty, heavy, high-sulphur crude. Venezuela’s Merey grade is extremely heavy and sulphurous, so few refineries anywhere can run it at scale. The company says Jamnagar has processed more than 216 different grades of crude.

The history helps too. Reliance signed a 15-year deal with Venezuela’s state oil company PDVSA in 2012 for up to 400,000 barrels a day of extra-heavy grades. At its peak, Venezuelan oil made up roughly 10 to 12 percent of Jamnagar’s throughput.

Where things stand

India restarted Venezuelan imports in February 2026 after a pause of almost a year, following the easing of US sanctions. Between April and August 2026, India bought Venezuelan crude worth about US$3.59 billion, and Reliance accounted for 74.3% of it. The surge also coincides with the West Asia conflict, which cut some Gulf supply and made alternatives more attractive.

Why India may not be able to buy much more

One buyer carries most of the weight. Reliance takes roughly three-quarters of India’s Venezuelan crude. That is why Washington is talking to Reliance, and it also means most of the spare appetite is already used. Few other Indian refineries have the units to run such heavy crude in large quantities.

The volumes are small compared with Russian crude. Estimates put India’s Venezuelan imports at about 196,000 to 257,000 barrels a day in September, against roughly 1.82 million barrels a day from Russia. Venezuelan oil is an addition to India’s mix, not a replacement for anything.

Supply and permissions can change. Reliance buys under a US general licence. If the licence terms tighten or sanctions policy shifts, the flow could fall quickly. Imports reportedly reached 427,000 barrels a day in May and then dropped by September.

The economics may be thinner than they look. Analysts say the discount depends on the gap between heavy and light crude, which can narrow, and on freight costs for the long haul from the Caribbean. If the discount shrinks, the case for taking more weakens.

Politics sits behind the pricing. India’s refiners buy on commercial terms, and have to weigh a US request against price, quality and contracts with other suppliers.

What to watch

Whether Reliance commits to more volume, whether other Indian refiners such as Indian Oil secure licences, and whether any investment in Venezuelan oilfields is announced. None had been confirmed at the time of writing.