Oil Ministry confirms Iranian crude purchases, rejects claims of payment-led tanker diversion

The Ministry of Petroleum and Natural Gas (MoPNG) on Saturday (March 4, 2026) dismissed reports that an Iranian crude oil tanker heading to India was diverted to China over payment issues, stating that Indian refiners are, in fact, purchasing Iranian crude oil. 

“Amid Middle-East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for Iranian crude imports, contrary to rumours being circulated,” the Ministry said in a social media post.

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Although the quantum of purchase has not been disclosed, the move marks a reversal from 2019, when India stepped away from purchasing Iranian crude following U.S. sanctions.

While refuting reports attributing vessel diversion to payment issues, the Ministry underlined that companies have “full flexibility to source oil from different sources and geographies based on commercial considerations”. India imports crude oil from over 40 countries, the post added.

On Friday (April 3, 2026), ship-tracking firm Kpler said the Aframax tanker Ping Shun, built in 2002 and sanctioned by the U.S. in 2025, had signalled Dongying in China as its destination mid-voyage instead of Vadinar in Gujarat, which it had indicated earlier this week.

Indian refiners have been looking for opportunities to purchase a few cargoes of Iranian oil on water following the recent sanctions waiver by Washington.

The Ministry clarified that changes in vessel destinations during transit are common in global oil trade, as bills of lading often indicate tentative discharge ports and cargoes may be rerouted mid-voyage for operational and commercial reasons.

“Claims on vessel diversion ignore how the oil trade works. Bills of Lading often carry indicative discharge ports, destinations and on-sea cargoes can change destinations mid-voyage based on trade optimisation and operational flexibility,” the Ministry said, adding, “It is reiterated that India’s crude oil requirements remain fully secured for the coming months.”

The Ministry also said that an LPG vessel, Sea Bird, carrying about 44,000 tonnes of Iranian LPG, berthed at Mangaluru on April 2 and is currently discharging cargo.

Historically, India was a major buyer of Iranian crude, importing significant volumes of Iranian light and heavy grades due to strong refinery compatibility and favourable commercial terms.