India says no payment issues with Iran, crude supplies fully secured

Story by  ANI | Posted by  Vidushi Gaur | Date 04-04-2026
Representational Image
Representational Image

 

New Delhi

India on Saturday clarified that there are no payment-related hurdles in importing crude oil from Iran, asserting that domestic refiners continue to procure supplies smoothly from multiple global sources.

Responding to reports about an Iranian oil tanker allegedly changing its destination mid-voyage from India to China, the Ministry of Petroleum and Natural Gas said such claims were misleading and did not reflect how the global oil trade operates. It stressed that changes in a vessel’s destination during transit are routine and driven by commercial and logistical considerations.

The ministry rejected suggestions that the rerouting was due to payment difficulties, calling such assertions “factually incorrect.” It maintained that Indian companies enjoy full flexibility in sourcing crude oil based on pricing and operational needs, with imports currently spanning more than 40 countries.

Officials further noted that despite supply uncertainties in the Middle East, India’s crude requirements remain fully secured for the coming months, including supplies sourced from Iran.

The clarification came after reports about the Aframax tanker Ping Shun, which had initially indicated Vadinar in Gujarat as its destination before later signalling a port in China. According to the ministry, such mid-sea changes are common, as shipping documents often mention tentative discharge ports that can be revised depending on trade optimisation.

In a related development, an LPG carrier transporting around 44,000 tonnes of Iranian gas recently docked at Mangalore and is in the process of unloading its cargo.

India was once a major importer of Iranian crude, benefiting from favourable pricing and refinery compatibility. However, purchases came to a halt in 2019 following tighter US sanctions. At its peak, Iranian oil accounted for over a tenth of India’s total crude imports.

More recently, a temporary relaxation in sanctions by the United States has opened a limited window for transactions involving Iranian oil, prompting renewed interest from Indian refiners in spot cargoes available at sea.

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Reiterating its position, the government emphasised that India’s energy security remains intact, with diversified sourcing ensuring stable supplies irrespective of short-term disruptions in global markets.