Even as analysts warned the US’s decision to eliminate sanction waivers for importers from Iran from May 2 could worsen India’s current account deficit, the government on Tuesday said a ‘robust plan’ was in place to ensure adequate supply of crude oil to Indian refineries.
“There will be additional supplies from other major oil-producing countries; Indian refineries are fully prepared to meet the national demand for petrol, diesel and other petroleum products,” petroleum minister Dharmendra Pradhan tweeted.
Iran is currently the third largest source of crude oil imports for India in volume term and the fourth largest in value term (implying the Persian Gulf country offers cheaper crude to the country). A complete embargo on importing oil from Iran would mean that India has to shift to other markets.
