Incorrect: India on claim of Iran oil ship's diversion to China over payment issue

India dismissed reports that an Iranian crude shipment meant for the country had been diverted to China due to payment issues, terming the claims "factually incorrect." It also clarified that there are no payment-related hurdles affecting imports of Iranian oil.

In Short

• Aframax tanker Ping Shun initially signalled Gujarat's Vadinar, later Dongying
• Petroleum ministry says no payment hurdle for Iranian oil imports
• It says global oil trade allows destination changes during shipments

India on Saturday refuted reports claiming that an Iranian crude oil shipment bound for India had been diverted to China over payment issues, calling such assertions “factually incorrect.” It clarified that there were no payment hurdles for Iranian crude imports and that cargoes at sea can change destinations mid-way due to commercial and operational reasons.

The clarification follows reports that the Aframax tanker Ping Shun, which had earlier signalled Vadinar in Gujarat as its destination, later appeared to be headed towards Dongying in China, according to ship-tracking firm Kpler. The cargo was expected to mark India’s first import of Iranian crude since 2019.

Dismissing these claims, the Petroleum and Natural Gas Ministry said reports and social media posts suggesting a diversion due to payment hurdles were inaccurate. It stated that India sources crude from over 40 countries and that oil companies have the flexibility to choose suppliers based on commercial considerations.

“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 and geographies based on commercial considerations,” the ministry wrote on X.

“The ministry further assured that Indian refiners have already secured adequate crude supplies for the coming 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 added.

Ship-tracking firm Kpler said on Friday that the Aframax tanker Ping Shun, built in 2002 and sanctioned by the US in 2025, was signalling Dongying in China as its destination, instead of Vadinar in Gujarat, which it had indicated earlier this week. The cargo aboard the vessel was expected to mark India’s first purchase of Iranian crude since 2019.

The petroleum ministry said that claims about the vessel’s diversion overlook how the global oil trade functions. “Bills of Lading often list indicative discharge ports, and cargoes at sea can change destinations mid-voyage due to commercial optimisation and operational flexibility,” it added.

It is reiterated that India’s crude oil requirements remain fully secured for the coming months, the ministry reiterated.

INDIA EYEING WAYS TO PROCURE IRANIAN CRUDE CARGOES AT SEA

The development came even as Indian refiners explore opportunities to procure Iranian crude cargoes at sea, following a 30-day waiver issued by Washington last month amid the ongoing US-Israel-Iran war, now in its sixth week with no immediate end in sight.

Before sanctions tightened in 2018, India was among the largest importers of Iranian oil, sourcing both light and heavy grades due to competitive pricing and suitability for domestic refineries.

At its peak, Iranian crude accounted for about 11.5 per cent of India’s total imports. The country imported around 518,000 barrels per day in 2018, which fell to 268,000 bpd between January and May 2019 during a limited US waiver period. Imports have not resumed since then.

After purchases halted in May 2019, India replaced Iranian volumes with supplies from the Middle East, the United States, and other producers.

On March 20, the US issued a 30-day waiver permitting the purchase of Iranian oil cargoes at sea to help stabilise global prices amid the conflict. The window is scheduled to expire on April 19.

- Ends