IOC to accept Russian crude oil on cost-inclusive freight basis

Indian Oil Corporation has set tougher terms for crude from Russia.

In its latest tender issued this week, the state-owned refiner said it would accept Russian and Black Sea loading grades on a delivered at place (DAP) basis or cost-inclusive freight (CIF) basis.

Previously, IOC purchased Russian and Kazakh crudes on either a free-on-board basis (FOB) and DAP basis.

Crude from the Russian Urals, ESPO blend and Caspian CPC blend are purchased on DAP basis.

Under FOB, it is the buyer who charts a vessel and lifts the crude from a terminal in the producing country and also pays for the cost of shipping the crude.