Indian refiners buying Iranian crude oil: Government

New Delhi: The Centre on Saturday said that Indian refiners are buying crude oil from Iran as part of their efforts to secure supplies amid disruptions in energy flows due to the ongoing war in West Asia, and that there are no payment-related difficulties in paying for Iranian oil.

The Union Ministry of Petroleum and Natural Gas also dismissed reports that an India-bound oil tanker carrying Iranian crude had rerouted mid-voyage to China due to “payment issues”.

Although the quantum Iran fuel is being purchased has not been informed by the Ministry, the purchase marks a reversal from the time when India stopped  from purchasing Iranian crude following US sanctions in 2019.

The government also confirmed that a tanker carrying 44,000 tonnes of Iranian liquefied petroleum gas (LPG) berthed at Mangalore on April 2 and is currently discharging the cargo.

This is first time, the Ministry confirming that it is buying fuel from the Iran following one month sanction waiver by the US. 

"The news reports and social media posts of an Iranian crude cargo being diverted from Vadinar, India to China due to “payment issues” are factually incorrect. India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources & geographies based on commercial considerations, " the Petroleum Ministry said in a post on social media platform X.

The Ministry further said refiners have secured their crude oil requirements, including from Iran. "There is no payment hurdle for Iranian crude imports, contrary to the rumours being circulated, " it said. 

India’s crude oil requirements remain fully secured for the coming months, the Ministry said. 

Ship-tracking firm Kpler on Friday stated that Aframax tanker Ping Shun, built in 2002 and sanctioned by the US in 2025, is now signalling Dongying in China as its destination instead of Vadinar in Gujarat, which it had indicated earlier this week.

Ping Shun is estimated to be carrying about 6,00,000 barrels of oil that was loaded from Kharg Island around March 4. Its declared ETA to Vadinar was April 4, according to Kpler.

The ministry clarified that changes in vessel destinations during transit are common in global oil trade, as bills of lading often indicate tentative discharge ports and cargoes may be rerouted mid-voyage for operational and commercial reasons. 

Historically, India was a major buyer of Iranian crude. Following sanctions tightening in 2018, imports ceased in May 2019, with volumes replaced by Middle Eastern, US and other grades.

The US last month waived sanctions on the purchase of Iranian oil at sea for 30 days in its latest attempt to ease oil prices that have been driven up by the US-Israeli war on Iran.That window expires April 19.

An estimated 95 million barrels of Iranian oil are on vessels at sea, of which around 51 million barrels could be sold to India, and the remaining are better suited for buyers in China and Southeast Asia.