Govt denies Iranian oil cargo diversion to China, says no payment issues in crude imports

Refuting media reports claiming that an India-bound Iranian oil tanker rerouted mid-voyage to China due to “payment issues”, the Petroleum Ministry on Saturday (April 4) stated that the reports were “factually incorrect.”

The ministry, in a post on X, stated that India has faced no such payment issues in securing crude oil imports.

Shipping documents and routing flexibility

Elaborating further, the ministry stated that the Bills of Lading - a critical, legally binding document issued by a carrier to a shipper, acting as a receipt of goods, a contract of carriage, and a document of title- often carry indicative discharge ports and destinations.

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It further stated that on-sea cargoes can change their destinations mid-voyage to optimise trade and maintain operational flexibility.

Official statement on crude supplies

“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 & geographies based on commercial considerations,” stated the ministry.

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“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 the rumours being circulated,” it added.

Clarification on LPG supply

As for claims regarding disruptions in LPG supply, the Petroleum Ministry clarified that the situation remains stable, pointing to the ongoing discharge of an Iranian LPG cargo at an Indian port.

The ministry stated that the LPG vessel Sea Bird, carrying approximately 44 TMT of Iranian LPG, berthed at Mangalore on April 2 and is currently in the process of discharging its cargo.

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"It is reiterated that India's crude oil requirements remain fully secured for the coming months. On LPG too, some claims being made are incorrect as LPG vessel Sea Bird carrying around 44 TMT Iranian LPG berthed at Mangalore, India on April 2 and is currently discharging," the post read.

The clarification follows media reports, citing a commodity market analysis firm, which claimed that a crude oil cargo originally destined for India had diverted to China due to alleged payment-related constraints.

Transit through Strait of Hormuz

India-flagged large gas carrier Green Sanvi successfully transited the Strait of Hormuz on Friday night, transporting approximately 46,650 metric tonnes of LPG cargo, reported ANI, quoting official sources.

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The development comes amid ongoing diplomatic engagement between Indian authorities and their Iranian counterparts to facilitate the passage of Indian vessels through the Strait of Hormuz, in view of the prevailing maritime restrictions linked to the continuing West Asia conflict.

The regional tensions, which began on February 28 following US-Israel strikes on Iran and subsequent retaliatory actions, have had a bearing on global energy supply chains, including fuel movements across key shipping routes.