Did Iranian oil tanker divert toward China due to payment issues? Govt denies reports

New Delhi: Amidst the ongoing conflict in the Middle East, the United States has lifted sanctions on Iranian oil located at sea, prompting several nations—including India—to prepare to purchase Iranian crude. Meanwhile, media reports had claimed that a vessel laden with Iranian oil was en route to India but was subsequently diverted to China due to 'payment-related issues'. However, the government has now issued a clarification regarding this matter.

What did the Indian government say?

The Central Government has stated that reports and social media posts alleging that a cargo of Iranian crude oil was diverted from Vadinar, India, to China due to "payment-related issues" are factually incorrect. India imports crude oil from over 40 countries, and companies possess complete autonomy to source oil from various origins and locations based on commercial considerations.

Amidst supply disruptions in the Middle East, Indian refiners have successfully secured their crude oil requirements, including supplies sourced from Iran. The statement further clarified that the claim—that an Iranian vessel bound for India was diverted to China due to payment issues—is merely a rumor. There are no payment-related impediments to the import of Iranian crude oil, nor has any vessel bound for India been diverted toward China.

"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. India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources," the Ministry of Petroleum and Natural Gas told the media.

Is India trying to optimize trade operations?

A statement issued by the Ministry of Petroleum and Natural Gas further noted that the claims regarding the diversion of the vessel overlook the fundamental mechanics of the oil trade. Bills of Lading often list multiple potential ports of discharge; consequently, vessels carrying cargo at sea may alter their route mid-voyage to optimize trade operations and exercise operational flexibility.

Do Not Pay Heed to Rumors: Petroleum Ministry

The Ministry of Petroleum has reiterated that India's crude oil requirements for the coming months are fully secured. In the case of LPG as well, certain claims are unfounded, as the LPG vessel 'Sea Bird'—carrying a cargo of approximately 44 TMT of Iranian LPG—arrived at India's Mangalore port on April 2 and is currently discharging its cargo there. The statement emphasized that there is no need to pay any heed to these rumors.