India confirms buying Iranian oil after 7 years

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

“Amid West Asia supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran. There is no payment hurdle for Iranian crude imports, contrary to rumours being circulated,” officials said.

The statement marks the first formal indication that Iranian crude may be re-entering India’s energy basket after a gap of nearly seven years, following the disruption of supplies in 2019 due to US sanctions.

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

On liquefied petroleum gas (LPG), officials dismissed concerns over shortages, confirming that the vessel Sea Bird, carrying around 44,000 metric tonnes of Iranian LPG, berthed at New Mangaluru Port on April 2 and was currently discharging cargo.

The ministry also termed as “factually incorrect” reports claiming that an Iranian crude cargo was diverted from Vadinar in Gujarat to China due to payment-related issues.

While acknowledging that a tanker recently altered its declared destination, industry experts said such changes were not unusual in global oil trade. “Tanker destination changes are quite normal, especially with Iranian cargo. It is often part of an optimisation process--sellers seek the best commercial outcome,” said Sumit Ritolia, an oil markets expert at Kpler.

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