Govt Rejects Iran Oil Shift to China, Assures Supply Stability

The Ministry of Petroleum and Natural Gas on Saturday refuted recent reports of Iranian oil shipment diversion from India to China due to payment issues. In a post on X (formerly Twitter), the ministry called such claims “factually incorrect”, while reassuring the country’s energy supplies remain secure. 

“The news reports and social media posts of an Iranian crude cargo being diverted from Vadinar, India to China due to ‘payment issues’ are factually incorrect. Indian refiners have already secured their crude oil requirements, including supplies from Iran, despite disruptions in the Middle East amid the ongoing Iran war,” the post read.

“There is no payment hurdle for Iranian crude imports, contrary to the rumours being circulated. India sources crude from over 40 countries and companies have full flexibility to adjust sourcing based on commercial considerations,” it added. 

The clarification comes after reports earlier this week that the US-sanctioned tanker Ping Shun, carrying Iranian crude, had redirected its route to China after initially indicating Vadinar port in India as its destination. 

Data from ship-tracking firm Kpler showed that the vessel, which was expected to carry about 600,000 barrels of crude, switched course while en route.

“Bills of Lading often carry indicative discharge ports, and on-sea cargoes can change destinations mid-voyage based on trade optimisation and operational flexibility,” the ministry added. 

India has not formally resumed purchases of Iranian crude since 2019 because of U.S. sanctions, though recent reports pointed to a possible restart after a limited waiver for shipments already in transit.

The government also pushed back against concerns over LPG availability, calling certain claims inaccurate. It said the LPG carrier Sea Bird, loaded with roughly 44,000 tonnes of Iranian fuel, docked at Mangalore on April 2 and is currently offloading its cargo.

The ministry reiterated its position on the same, while saying, “India’s crude oil requirements remain fully secured for the coming months”. It sought calm concerns over supply disruptions as geopolitical tensions continue to affect global energy markets.

India stopped buying crude from Iran in May 2019 after U.S. sanctions came into force, and restarting those flows has remained difficult due to hurdles around payments, shipping, and insurance.

A short-term waiver announced by U.S. President Donald Trump for cargoes already in transit has briefly eased restrictions, fuelling hopes of a potential restart in shipments.