India on Saturday said there are no payment issues with Iran for crude imports and asserted that domestic refiners continue to source oil from the country alongside a wide range of global suppliers.
In a post on X, the Ministry of Petroleum and Natural Gas dismissed reports that an oil tanker carrying Iranian crude had rerouted mid-voyage from its previously indicated destination of India to China. The ministry said such claims overlook standard industry practices, where cargoes can change destination during transit based on trade optimisation and operational flexibility.
Terming as “factually incorrect” assertions that the cargo was diverted from Vadinar in Gujarat to China due to payment hurdles, the ministry said, “there are no payment hurdles for Iranian crude imports”.
“India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources and geographies based on commercial considerations,” it said.
“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, contrary to the rumours being circulated.”
According to a PTI report, ship-tracking firm Kpler had said on Friday that the Aframax tanker Ping Shun, built in 2002 and sanctioned by the US in 2025, was signalling Dongying in China as its destination instead of Vadinar in Gujarat, which it had indicated earlier in the week.
The cargo aboard Ping Shun would have marked the first Iranian crude shipment to India since 2019. Indian refiners have been exploring opportunities to purchase Iranian oil cargoes at sea following a recent sanctions waiver by the United States.
Clarifying further, the ministry said changes in vessel destinations during transit are common in global oil trade. “Claims on vessel diversion ignore how the 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,” it said.
“It is reiterated that India's crude oil requirements remain fully secured for the coming months,” the ministry added.
The ministry also noted that an LPG vessel, Sea Bird, carrying about 44,000 tonnes of Iranian LPG, berthed at Mangalore on April 2 and is currently discharging cargo.
India was historically a major buyer of Iranian crude, importing both light and heavy grades due to refinery compatibility and favourable terms. However, imports ceased in May 2019 after sanctions tightened, with supplies replaced by Middle Eastern, US and other sources. At its peak, Iranian crude accounted for 11.5 per cent of India’s total imports.
India imported about 5,18,000 barrels per day of Iranian oil in 2018, which declined to 2,68,000 bpd between January and May 2019 during a US waiver period, before stopping entirely.
The US last month waived sanctions on the purchase of Iranian oil at sea for 30 days to ease rising oil prices amid the US-Israeli war on Iran. The window is set to expire on April 19. An estimated 95 million barrels of Iranian oil are currently on vessels at sea, of which around 51 million barrels could be sold to India, while the rest are more suited for buyers in China and Southeast Asia.
Ping Shun is estimated to be carrying about 6,00,000 barrels of oil loaded from Kharg Island around March 4, with an earlier declared ETA of April 4 for Vadinar, according to Kpler.
(With inputs from PTI)
