Centre clarifies oil trade practices as reports of Iran tanker diversion spark speculation
April 4, 2026: India on Saturday rejected claims of payment hurdles for importing crude oil from Iran, asserting that domestic refiners continue to source oil without disruptions. The Ministry of Petroleum and Natural Gas clarified that reports of a tanker rerouting from India to China were “factually incorrect,” emphasizing that such changes are a routine part of global oil trade operations.
The clarification came after tracking data suggested that the Aframax tanker Ping Shun had changed its destination from Vadinar in Gujarat to China. Officials explained that cargo destinations often shift mid-voyage due to commercial and operational considerations, with bills of lading typically indicating tentative ports. The government stressed that Indian companies retain full flexibility to source crude from over 40 countries based on market conditions.
Reassuring energy security, the ministry said India’s crude requirements remain fully met despite disruptions in West Asia. It also highlighted that an LPG shipment from Iran recently reached Mangalore, underlining continued trade flows. While India had halted Iranian oil imports in 2019 due to sanctions, recent policy relaxations have opened limited opportunities, even as refiners diversify sourcing to maintain stable supplies.