India admits to purchasing Iranian oil and denies payment obstacles

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【Text / Observer Network, Qi Qian】

On April 4, the Indian Ministry of Petroleum and Natural Gas said in a statement that India is purchasing crude oil from countries including Iran to address the current energy crisis, and denied that payment obstacles are hindering these purchases.

“In the event of disruptions in Middle Eastern supplies, Indian refineries have secured their crude oil requirements, including from Iran,” the department wrote on the social media platform X, “Contrary to rumors circulating, there are no payment obstacles to imports of Iranian crude oil.”

The statement said that India imports crude oil from more than 40 countries, and companies can flexibly choose to source oil from different origins based on commercial considerations.

The statement denied reports that an Iranian crude oil tanker had diverted from India’s Vadinar port due to payment obstacles, and added that the destination of ships is often only indicative. “Bills of lading usually list only the intended destination port for unloading, while at sea the destination of cargo may be changed mid-voyage according to trade optimization and operational flexibility.”

Bloomberg reported the related news on March 3 and said that if this tanker arrives in India, it would mean the first shipment of Iranian crude oil to India in nearly seven years.

In addition, the statement also confirmed the arrival of Iranian liquefied petroleum gas (LPG), saying that a cargo ship carrying about 44,000 tons of LPG arrived on April 2 and is currently unloading at Mangalore, India.

Screenshot of the post

Bloomberg said this statement unusually openly acknowledged India’s energy ties with Iran.

The report noted that because of U.S. sanctions, India cut off energy trade with Iran after 2019. In mid-March, the United States announced a 30-day temporary waiver for Iranian oil, allowing countries to purchase Iranian trapped-in-ports crude oil and products, effective until April 19, and applicable only to cargo already loaded before March 20. After that, India resumed contact with Iran.

At the same time, India’s refining industry has been working to address issues in trade, transportation, and banking arrangements, because Iran is still subject to strict sanctions.

As fighting in the Middle East continues, the Strait of Hormuz—which is a key global energy route—is effectively under blockade. This situation has roiled global energy markets, and India, which relies heavily on Middle Eastern energy, feels the impact particularly acutely.

Data shows that India is the world’s fourth-largest buyer of liquefied natural gas and the second-largest buyer of liquefied petroleum gas. Reuters reported that last year India consumed 33.15 million tons of cooking gas, with about 60% coming from imports, and about 90% of that coming from the Middle East.

Since the conflict began, India has been negotiating with Iran to ensure the safe passage of ships previously stranded in the Persian Gulf.

In mid-March, Indian Foreign Minister S. Jaishankar had confirmed that an LPG vessel flying the Indian flag had passed through the Strait of Hormuz. He also said that this proved India’s diplomatic efforts had “produced results.”

Image of an Indian LPG tanker — Indian media

According to Reuters’ earlier report, behind Iran “giving the green light” to Indian ships, there is an exchange of interests between the two countries.

Three people with knowledge of the matter said that Iran has asked India to release three oil tankers detained in February that are “related to Iran and under U.S. sanctions,” as part of negotiations aimed at ensuring safe passage for ships flying the Indian flag or heading to India through the Strait of Hormuz. One Iranian official who was familiar with the matter said that Iran is also seeking the Indian side’s supply of certain medicines and medical equipment. None of these people agreed to disclose their names.

This article is an exclusive report by Observer Network. No unauthorized reproduction is allowed.