India acknowledges sourcing crude from Iran amid West Asia supply disruptions

The Centre on Saturday, for the first time, acknowledged that Indian refiners have secured part of their crude oil requirements from Iran amid ongoing supply disruptions in West Asia, while also confirming the arrival of an Iranian LPG shipment at Mangalore.

Officials in the Ministry of Petroleum and Natural Gas said India, which imports crude from over 40 countries, allows its refiners full flexibility to source oil based on commercial considerations and prevailing market dynamics.

“Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran. There is no payment hurdle for Iranian crude imports as per some rumours being circulated,” officials said.

The statement marks the first formal indication from the government that Iranian crude may be re-entering India’s energy basket after a gap of nearly seven years following sanctions-related disruptions in 2019.

Reassuring markets, the government said India’s crude oil supplies remain “fully secured” for the coming months despite volatility in the region.

On liquefied petroleum gas (LPG), officials dismissed circulating claims of supply constraints, confirming that the vessel Sea Bird, carrying around 44,000 metric tonnes (TMT) of Iranian LPG berthed at New Mangalore Port on April 2 and is currently discharging cargo.

The development underscores a calibrated approach by Indian refiners to diversify sourcing amid evolving geopolitical conditions, even as New Delhi maintains that procurement decisions are driven by commercial viability rather than political considerations.

India had halted Iranian crude imports in 2019 following tightening of US sanctions, prompting refiners to pivot towards alternative suppliers including Russia and Gulf producers.

The latest disclosure suggests a potential, albeit cautious, re-engagement with Tehran as supply chains remain under stress.