Iranian oil imports ban: India to tap other markets for its crude requirement

To meet shortfall arising from the cut in Iranian oil imports, India is considering US offer for supply of oil and gas worth $3 billion. The government is also looking at increasing supplies from other countries including Saudi Arabia, UAE, Mexico, Brazil, and Colombia. Iran has been a major source of supply account for nearly 10% of India’s oil imports.

Last year in September the Trump administration had offered India oil and gas at concessional rates comparable to Iran. Officials from both countries have been in talks to work out a deal which will be profitable to both sides, claimed sources.

A top diplomat confirmed on condition of anonymity that “The biggest issue of getting from US is the transport costs. As Iran offers to India cheaper freight and a 60-day credit period to Indian Oil Corporation, Mangalore refinery and petrochemicals (MRPL) and Nayara Energy (formerly Essar Oil).”