‘Factually incorrect’: India rejects ‘payment issues’ claim over Iranian crude tanker’s diversion to China

The Ministry of Petroleum and Natural Gas on Saturday dismissed reports suggesting that an Iranian crude oil shipment meant for India had been rerouted to China due to payment-related hurdles, asserting that such claims are incorrect. Clarifying the situation, the ministry said, “The news reports and social media posts of an Iranian crude cargo being diverted from Vadinar, India to China due to “payment issues” are factually incorrect. India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources & geographies based on commercial considerations.”Taking to social media platform X, the ministry assured that Indian refiners have already secured their energy supplies, for the upcoming months. “Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for Iranian crude imports, contrary to the rumours being circulated,” it stated.“It is reiterated that India’s crude oil requirements remain fully secured for the coming months.”Commenting on allegations of pending payments the ministry it also explained that changes in vessel destinations are not unusual in global oil trade. “Claims on vessel diversion ignore how oil trade works. Bills of Lading often carry indicative discharge ports destinations and on-sea cargoes can change destinations mid-voyage based on trade optimisation and operational flexibility.” The clarification comes after recent reports indicated that a tanker carrying Iranian crude had altered its destination mid-voyage due to payment problems. The Aframax tanker Ping Shun, which had earlier been indicating Vadinar in Gujarat, was later reported by ship-tracking firm Kpler to be heading towards Dongying in China. The cargo was expected to be India’s first Iranian crude shipment since 2019. On liquefied petroleum gas (LPG) supplies, the ministry also rejected related claims, stating, “On LPG too, some claims being made are incorrect as LPG vessel Sea Bird carrying around 44 TMT Iranian LPG berthed at Mangalore, India on April 2 and is currently discharging.” India had been a significant buyer in the past, importing around 518,000 barrels per day in 2018 before volumes fell in 2019 during a sanctions waiver period and eventually halted. Iranian crude once accounted for about 11.5 per cent of India’s total imports. Despite a recent US waiver permitting limited purchases of Iranian oil at sea for 30 days, financial constraints, including Iran’s exclusion from the SWIFT system, have continued to affect transactions. The waiver is set to expire on April 19, with an estimated 95 million barrels of Iranian oil currently stored on vessels at sea.