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India confirms it is importing Iranian crude and LPG

India confirms it is importing Iranian crude and LPG

The ministry said that India’s crude oil requirements remain fully secured for the coming months. Photograph: (AFP)

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The Ministry of Petroleum and Natural Gas denied reports that an Iranian crude cargo had been diverted from Vadinar port in Gujarat to China due to “payment issues” and termed them factually incorrect. India imports crude oil from more than 40 countries, the ministry added.

New Delhi: India has confirmed it is sourcing crude oil and liquefied petroleum gas (LPG) from Iran amid the ongoing energy supply disruptions in West Asia caused by war in the region. The Ministry of Petroleum and Natural Gas issued a statement on Saturday addressing rumours of supply problems. “Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for Iranian crude imports,” it said.

It directly rejected reports and social media claims that an Iranian crude cargo had been diverted from Vadinar port in Gujarat to China due to “payment issues”.

“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,” the ministry stated.

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India imports crude oil from more than 40 countries, the statement noted, adding that companies have “full flexibility to source oil from different sources and geographies based on commercial considerations.” It explained how oil trade operates: “Claims on vessel diversion ignore how oil trade works. Bills of Lading often carry indicative discharge ports destinations and on-sea cargoes can change destinations mid-voyage based on trade optimisation and operational flexibility.”

The ministry added, “It is reiterated that India’s crude oil requirements remain fully secured for the coming months.”

On LPG, the government dismissed similar concerns. “On LPG too, some claims being made are incorrect as LPG vessel Sea Bird carrying around 44 TMT Iranian LPG berthed at Mangalore, India on April 2 and is currently discharging,” the statement said.

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This marks the first time in years that India has openly confirmed buying energy supplies from Iran. Before 2019, Iran was a major supplier, accounting for up to 11-12% of India’s total crude imports in some years. Imports largely stopped after the United States withdrew from the JCPOA nuclear deal and reimposed sanctions, ending waivers for many countries, including India.

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Siddhant Sibbal

Siddhant Sibbal, covers diplomacy and defence for WION since 2018. He has been charting Indian diplomacy, including India's rise on the global stage. He has covered major internati...Read More