India on Saturday said there are no payment issues with Iran for crude imports and affirmed that refiners continue to source oil from the country alongside a diverse pool of global suppliers, even as it dismissed reports of a tanker rerouting to China as a misreading of standard industry practice.
In a post on X, the Ministry of Petroleum and Natural Gas rejected claims that an oil tanker carrying Iranian crude had changed course mid-voyage from India to China due to payment hurdles. The ministry said such assertions were “factually incorrect” and ignored the operational flexibility inherent in global oil trade.
Terming as "factually incorrect" assertions that the cargo was diverted from its previously indicated destination of Vadinar in Gujarat to China due to payment hurdles, the ministry said, "there are no payment hurdles for Iranian crude imports".
"India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources and geographies based on commercial considerations," it said.
"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."
The clarification came after ship-tracking firm Kpler reported that Aframax tanker Ping Shun, sanctioned by the US in 2025, is now signalling Dongying in China as its destination instead of Vadinar, which it had indicated earlier in the week. The cargo would have marked India’s first purchase of Iranian crude since 2019, following a recent US sanctions waiver.
The ministry emphasised that changes in vessel destinations during transit are routine, as bills of lading often carry indicative discharge ports and shipments may be rerouted mid-voyage for commercial or operational reasons.
"Claims on vessel diversion ignore how the 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 ministry said.
"It is reiterated that India's crude oil requirements remain fully secured for the coming months."
It also noted that an LPG vessel, Sea Bird, carrying about 44,000 tonnes of Iranian LPG, berthed at Mangalore on April 2 and is currently discharging cargo.
India was once a major importer of Iranian crude, with purchases peaking at 11.5 per cent of total imports. Shipments halted in May 2019 after tighter US sanctions, with supplies replaced by crude from the Middle East, the US and other sources.
At its peak, India imported about 5,18,000 barrels per day of Iranian oil in 2018, which declined to 2,68,000 bpd between January and May 2019 during a sanctions waiver period. Imports have remained halted since.
The US last month granted a 30-day waiver for purchasing Iranian oil at sea to ease rising prices amid the ongoing conflict involving Iran, opening a limited window that expires on April 19. Of the estimated 95 million barrels of Iranian oil currently at sea, around 51 million barrels could potentially be routed to India.
The Ping Shun tanker is estimated to be carrying about 6,00,000 barrels of oil loaded from Kharg Island around March 4, with an earlier declared ETA of April 4 for Vadinar, according to Kpler.
