India acknowledges sourcing Iranian crude amid West Asia turmoil, confirms LPG cargo at Mangaluru
New Delhi, April 5. India on April 4 publicly acknowledged for the first time that its domestic refiners have procured crude oil from Iran amid ongoing supply disruptions in West Asia, while also confirming the arrival of an Iranian LPG shipment at New Mangaluru Port.
Officials from the Ministry of Petroleum and Natural Gas said India – which sources crude from more than 40 countries – has given refiners complete commercial freedom to secure supplies based on market conditions and pricing dynamics.
“Amid West Asia supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran. There is no payment hurdle for Iranian crude imports, contrary to rumours being circulated,” officials said.
The statement is the clearest indication yet that Iranian crude may be returning to India’s energy mix after nearly seven years. Supplies from Iran had stopped in 2019 following the tightening of sanctions by the United States.
Seeking to calm market concerns, the government maintained that India’s crude supplies remain “fully secured” for the months ahead despite heightened regional volatility.
On liquefied petroleum gas (LPG), officials rejected reports of any shortage, confirming that the vessel Sea Bird, carrying about 44,000 metric tonnes of Iranian LPG, docked at New Mangaluru Port on April 2 and is currently unloading its cargo.
The ministry also described as “factually incorrect” media reports claiming that an Iranian crude shipment was diverted from Vadinar Port to China due to payment issues.
Industry experts noted that changes in tanker destinations are not uncommon in global oil trade.
“Tanker destination changes are quite normal, especially with Iranian cargo. It is often part of an optimisation process where sellers seek the best commercial outcome,” a report in The Tribune quoted oil market analyst Sumit Ritolia of Kpler as saying.
India had ceased Iranian crude imports in 2019 after US sanctions tightened, forcing refiners to diversify towards alternative suppliers, including Russia and producers in the Gulf region.
