In a notable development, Indian refiners purchased their first shipment of Iranian oil in 7 years on Saturday amid the ongoing war in West Asia that has disrupted supplies through the Strait of Hormuz.
The development was confirmed by the Ministry of Petroleum and Natural Gas (MoPNG) on X. The government body has also issued a firm rebuttal against reports suggesting that India is facing financial hurdles in these transactions.
Decoding the 7 year gap
The world’s third-biggest oil importer and consumer, India had last received a shipment of Iranian oil from Tehran in May 2019.
New Delhi had suspended sourcing Iranian oil in mid-2019 following US pressure not to buy Iranian crude. However, significant supply disruptions stemming from the regional war have prompted a strategic shift to secure energy needs.
“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,” the oil ministry said on X.
Notably, this strategic shift from New Delhi comes shortly after, the United States temporarily removed sanctions on Iranian oil and refined products to ease global oil supply shortages.
India’s oil imports strategy in the background of a war
The clarification comes as Indian refiners continue to navigate supply chain volatility in the Middle East.
According to the Ministry’s statement on X (formerly Twitter), Indian refiners currently source crude from over 40 countries.
The government maintained that these companies have “full flexibility” to adjust their sourcing based on commercial considerations and geographical advantages.
Addressing specific claims regarding a vessel being diverted from Vadinar, India, to China, the MoPNG explained that such movements are standard practice in global oil trade.
“Bills of Lading often carry indicative discharge ports,” the Ministry stated, adding that on-sea cargoes frequently change destinations mid-voyage to optimize trade and operational efficiency.
The Ministry further reiterated that India’s crude oil requirements are “fully secured” for the coming months, downplaying fears of a supply crunch resulting from regional tensions.
LPG Consignment Arrives at Mangalore
In a bid to provide concrete evidence of continued trade flow, the Ministry highlighted the arrival of a significant liquefied petroleum gas (LPG) shipment. The vessel Sea Bird, carrying approximately 44,000 metric tonnes (TMT) of Iranian LPG, successfully berthed at the Mangalore port on April 2.
The Ministry confirmed that the fuel is currently being discharged, directly contradicting rumors that Iranian energy imports had hit a standstill.