Government Rejects Reports of Iranian Oil Diversion, Ensures Smooth Imports

India has categorically rejected recent claims that an Iranian oil cargo originally meant for Indian refineries was diverted to China due to payment problems, asserting that such reports are “factually incorrect” and there are no payment hurdles for crude oil imports from Iran. The government’s clarification aims to reassure markets and energy stakeholders amid ongoing disruptions in global supply caused by the conflict in the Middle East.

The Ministry of Petroleum and Natural Gas responded to rumours circulating on social media and in some media reports that suggested an Iranian tanker’s destination shift from India to China resulted from India’s inability to pay for Iranian crude. According to the official statement, these assertions overlook standard commercial practices in the global oil trade, where destination changes can occur for various logistical or operational reasons unrelated to payment issues.

Union Minister Hardeep Singh Puri further emphasised that Indian refiners — part of a diversified crude procurement strategy involving more than 40 countries — have already secured their oil requirements, including supplies from Iran. He noted that Indian companies maintain the flexibility to source crude based on commercial considerations, and that no disruption in payments for Iranian imports exists.

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The clarification comes amid broader energy market uncertainty caused by the ongoing Iran–U.S. conflict, which has disrupted shipments through the Strait of Hormuz and led to temporary shifts in global trade flows. Some independent reports suggest at least one sanctioned tanker carrying Iranian crude mid‑voyage changed its declared destination to China, reflecting complexities in payments and logistics for Iranian barrels. However, the government has dismissed any link between such instances and payment failures by Indian refiners.

India’s crude oil supplies are described as fully secured for the coming months, with imports managed through contractual and market arrangements that avoid reliance on any single source or payment channel. The government also reassured that LPG supplies from Iranian cargoes, such as a sanctioned vessel unloading at Mangalore port, remain unaffected by these rumours.

The official statements aim to calm concerns among industry players and investors about potential energy shortages or payment barriers, especially as geopolitical tensions continue to impact global oil markets. The reassurance underscores India’s resilient energy procurement strategy and the government’s intent to maintain uninterrupted import channels even amid regional conflict and logistical challenges.

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