India has strongly rejected reports suggesting payment problems with Iran-led crude oil imports after a tanker carrying Iranian oil reportedly changed its destination from India to China mid-voyage.
Government Rejects Payment-Related Claims
The Ministry of Petroleum and Natural Gas clarified that there are no payment hurdles in crude oil trade with Iran, dismissing media reports as “factually incorrect.”
Officials said Indian refiners continue to source crude from multiple global suppliers, including Iran, based on commercial requirements and market conditions.
Rerouting of Oil Tanker Explained
The controversy arose after reports that the Aframax tanker Ping Shun, initially signaling Gujarat’s Vadinar port as its destination, later changed course to China.
The ministry stated that such mid-voyage destination changes are common in global oil trade and often occur due to operational or commercial optimization.
It also emphasized that Bills of Lading frequently mention tentative destinations that can be updated during transit.
India Says Supply Chain Fully Secure
Authorities reiterated that India’s crude oil requirements remain fully secured for the coming months, with imports coming from around 40 countries.
The government stressed that refiners have full flexibility to source oil globally depending on pricing and availability.
Background on Iran Oil Trade
India had previously been a major importer of Iranian crude, but imports stopped in 2019 after tightening US sanctions.
At its peak, Iranian oil accounted for more than 11 percent of India’s total crude imports, but supply shifted to Middle Eastern, US, and other global sources after sanctions were imposed.
Oil Shipment Context
Reports suggested the tanker was carrying hundreds of thousands of barrels of Iranian crude loaded from Kharg Island. However, officials maintained that destination changes during shipping are routine in global oil logistics.
Separately, the ministry also confirmed the arrival of an LPG vessel carrying Iranian-origin cargo at Mangalore earlier this month.
India’s Stand
The government reiterated that India’s energy supply chain remains stable and diversified, rejecting speculation of disruption due to Iran-related trade concerns.