US commerce secretary Wilbur Ross, who is on a visit to New Delhi, on Monday said that the Trump administration can’t ensure the sale of American oil to India at cheaper rates as the prices are controlled by private companies. The US sanctions against Iran have barred India and other Asian buyers from importing oil from Tehran, New Delhi’s third-largest supplier in FY19.
Asked if the US would supply at lower rates to make up for loss to New Delhi, Ross said: “Oil is owned by private people, so the government cannot force people to make concessionary prices.” Oil imports from Iran suit India more as supplies from Tehran typically land up here in around a week, while those from the US and South American nations take as many as 30-45 days. This also adds to the shipping and other logistics costs, inflating the import bill.
