The Iran-bound crude oil shipment, which was initially destined for India, changed course mid-voyage and began moving toward China, raising speculation that payment issues or sanctions-related hurdles may have forced the diversion. Now, the Ministry of Petroleum and Natural Gas has stepped in to clarify that there are no payment issues and that any such claims are “factually incorrect.”
Reports of the potential fallout came after ship tracking company Kpler said the Aframax tanker Ping Shun – which had initially indicated Vadinar in Gujarat as its destination – had changed course and was now heading towards Dongying in China. path Live updates of the US-Iran war.
In response to these allegations, the Ministry of Oil and Natural Gas said: “There are no obstacles in paying for imports of Iranian crude.” She also stressed that Indian refiners continue to buy oil not only from Iran but from a variety of suppliers across the world.
“India imports crude oil from 40 countries, and companies enjoy full flexibility to source oil from different sources and geographical regions on the basis of commercial considerations,” the statement said.
Why did the ship change course?
The ministry explained that such changes mid-voyage are not unusual in oil trade. She said shipping destinations are often indicative and can change depending on commercial and operational factors.
“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.
In essence, officials highlighted that rerouting could depend on multiple factors and is not simply a sign of supply disruptions or diplomatic friction.
The ministry also pointed to the ongoing energy trade with Iran, noting that an LPG ship called Sea Bird, carrying about 44,000 tons, docked in Mangalore on April 2 and is currently unloading its cargo.
The ministry says supplies remain safe
Amid ongoing supply concerns linked to tensions in West Asia, the government has sought to reassure markets that India’s energy needs remain fully covered.
“It has been reiterated that India’s crude oil requirements will remain fully assured for the coming months.”
The ministry said: “Amid the disruption of Middle East supplies, Indian refiners have secured their crude oil needs, including from Iran, and there is no obstacle in paying for imports of Iranian crude, contrary to circulating rumours.”
The first Iranian crude shipment since 2019?
The Peng Shun shipment drew attention because it was expected to be the first Iranian crude shipment to India since 2019, when imports stopped after the tightening of US sanctions.
According to a report by news agency PTI, the tanker, built in 2002 and sanctioned by the US in 2025, is estimated to carry around 600,000 barrels of oil, which was loaded from Iran’s Kharg Island around March 4. Its previously announced arrival in Vadinar was on April 4.
Sanctions window
Indian refiners recently began exploring opportunities to buy Iranian oil cargoes at sea after a temporary exemption from US sanctions opened a short window for such transactions.
Last month, Washington eased restrictions by granting a 30-day exemption for purchases of Iranian oil at sea, in an attempt to stabilize global oil prices amid geopolitical tensions. The window is scheduled to close on April 19.
Currently, it is estimated that about 95 million barrels of Iranian oil are floating in the sea. The agency’s report added that approximately 51 million barrels of this amount are likely to be directed to India, while the rest is considered more suitable for buyers in China and Southeast Asia.
History of Iranian-Indian oil imports
Iran was one of India’s major crude oil suppliers, accounting for up to 11.5% of total imports at its peak. In 2018, India imported around 5,18,000 bpd, which declined sharply to 2,68,000 bpd in early 2019 before stopping completely in May that year due to sanctions.
Indian refiners have traditionally preferred Iranian light and heavy crudes due to their compatibility with local refinery configurations and favorable pricing conditions.
