India said on Saturday that there are no problems in paying with Iran for crude imports, and that refineries continue to source oil from the country, as well as from a wide range of global suppliers.
In a post on
The ministry described as “factually incorrect” the assertions that the shipment was diverted from its pre-selected destination at Vadinar in Gujarat to China due to payment hurdles, and said “there are no payment hurdles for imports of Iranian crude.”
She added, “India imports crude oil from 40 countries, and companies enjoy complete flexibility in sourcing oil from different sources and geographical regions based on commercial considerations.”
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“Amid Middle East supply disruptions, Indian refiners have secured their crude oil needs, including from Iran, and there is no hurdle in paying for Iranian crude imports, contrary to circulating rumours.”
The Aframax tanker Ping Shun, built in 2002 and sanctioned by the United States in 2025, is now citing Dongying in China as its destination instead of Vadinar in Gujarat, which it flagged earlier this week, ship tracking firm Kpler reported on Friday.
The oil on board the Ping Shun would have been the first Iranian crude India has bought since 2019. Indian refiners have been looking for opportunities to buy a few cargoes of Iranian oil on the water following Washington’s recent sanctions waiver.
The ministry explained that changes in ship destinations during transit are common in global oil trade, as bills of lading often indicate temporary ports of discharge and goods may be redirected mid-voyage for operational and commercial reasons.
“Claims for ship diversions ignore how oil trade works. Bills of lading often carry indicative ports of discharge, and sea freight and destinations can change destinations mid-voyage based on improved trade and operational flexibility,” the ministry said.
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“It has been reiterated that India’s crude oil requirements will remain fully assured for the coming months.”
LPG tanker arrives in Mangalore
The ministry also said that the LPG ship, Sea Bird, carrying around 44,000 tons of Iranian LPG, docked in Mangalore on April 2 and is currently unloading the cargo.
Historically, India has been a major buyer of Iranian crude, importing large quantities of Iranian light and heavy crude due to strong alignment with refineries and favorable trade terms.
After the tightening of sanctions in 2018, imports stopped in May 2019, and the quantities were replaced with Middle Eastern, American, and other crudes. At its peak, Iranian crude oil represented 11.5 percent of India’s total imports.
India used to buy 5,18,000 bpd of Iranian oil in 2018, which slowed to 2,68,000 bpd between January and May 2019 when the US granted waivers to a few buyers. There have been no imports since then.
The main crude oils that Indian refiners used to buy are Iranian light crude and Iranian heavy crude.
Last month, the United States waived sanctions imposed on purchasing Iranian oil at sea for 30 days in its latest attempt to reduce oil prices that have risen due to the US-Israeli war on Iran.
This window ends on April 19. There are an estimated 95 million barrels of Iranian oil on board ships at sea, of which about 51 million barrels can be sold to India, and the rest is more suitable for buyers in China and Southeast Asia.
Ping Shun is estimated to be carrying around 6,00,000 barrels of oil which was loaded from Kharg Island around March 4. Its expected arrival time in Vadinar was April 4, according to Kpler.
