Background

Hindustan Petroleum Corporation Limited (HPCL) is one of India's three major state-owned oil refining and marketing companies, operating refineries at Mumbai and Visakhapatnam and distributing petroleum products nationwide. Like Bharat Petroleum and Indian Oil Corporation, HPCL has been a historical buyer of Iranian crude during waiver periods and depends on the strait of Hormuz for the majority of its crude supply.

HPCL appeared in the context of the 15 April 2026 OFAC action designating Indian nationals and shipping entities connected to the Shamkhani Iranian oil-smuggling network. The designation of Indian intermediaries across the shipping supply chain creates compliance risk for all three state refiners.

India's state refining sector collectively processes the bulk of the country's crude imports, the majority of which transit Hormuz. The combination of IRGC attacks on Indian-flagged tankers and OFAC enforcement against Indian shipping intermediaries has placed HPCL alongside IOC and BPCL in a structural bind between energy security and US sanctions compliance.

Common Questions

What is Hindustan Petroleum's exposure to Iran sanctions?

HPCL faces indirect exposure through Indian shipping intermediaries designated by OFAC. Purchasing Iranian crude through those intermediaries would create secondary sanctions risk for the refiner.Source: US Treasury OFAC

How the World Sees Them

India

HPCL is one of three state refiners facing simultaneous supply disruption and US sanctions risk; the government must balance energy costs against compliance exposure.

United States

Secondary sanctions risk applies to refiners purchasing Iranian crude through designated intermediaries, regardless of whether the refiner itself is targeted.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 21 April 2026. Editorial standards.