The Petroleum Ministry on Saturday denied reports alleging that a cargo of Iranian crude oil bound for India was diverted to China due to ‘payment issues’.
The Petroleum Ministry has said in a post that India has not faced any payment related hurdle in securing the import of crude oil. Refuting media reports, the ministry said bills of lading often record indicative discharge ports and destinations, and ocean cargo ships may change destinations during a voyage based on trade optimization and operational flexibility.
The ministry said, “Reports and social media posts about a cargo of crude oil from Iran being diverted to China due to payment issues are factually incorrect. India imports crude oil from more than 40 countries, and companies have complete freedom to source oil from different sources and geographies depending on commercial reasons. Despite supply disruptions in the Middle East, Indian refiners have met their crude oil requirements, including those from Iran, and contrary to some rumours, Iranian crude oil is not being exported to India. There are no payment barriers to imports.”
“Vessel diversion claims ignore the workings of the oil trade. Bills of lading often list nominal discharge ports and destinations, and destinations may change during maritime cargo voyages based on trade optimization and operational flexibility,” the post said.
Responding to rumors regarding LPG supply, the Ministry clarified that LPG vessel Sea Bird carrying approximately 44 TMT of Iranian LPG arrived in Mangalore on Thursday and is currently offloading LPG.
“It is reiterated that India’s crude oil requirements for the coming months are fully secured. With regard to LPG also, some of the claims being made are false as the LPG vessel Sea Bird carrying approximately 44 TMT of Iranian LPG arrived in Mangalore, India on April 2 and is currently offloading,” X Post wrote.
The incident comes after media reports quoting a commodity market analysis firm claimed that an India-bound crude oil vessel was diverted to China due to payment issues.
Indian-flagged giant gas carrier Green Saanvi safely transited the Strait of Hormuz on Friday night carrying a cargo of about 46,650 metric tonnes of liquefied petroleum gas (LPG), according to official sources.
The central government is in talks with Iranian authorities to allow Indian ships to pass through the Strait of Hormuz amid the maritime blockade imposed due to the ongoing conflict in West Asia.
The Middle East crisis began with attacks on Iran by the US and Israel on February 28, and Iran’s subsequent retaliation that plunged the entire region into conflict, affecting global fuel supplies.