India bends maritime rules to secure Iranian oil crude

India’s shipping ministry has granted special docking rights to four Iran-linked tankers arriving with Iranian crude at Gujarat’s Sikka port along the western coast, Reuters reports, citing unnamed sources. India’s largest refiner, Reliance Industries, had requested a special waiver from the ministry as Iranian shadow vessels lack international ins. and safety certifications.

Pragmatism over protocol: All four vessels are under US sanctions and over 20 years old. India typically bars aging ships that lack seaworthiness certifications from docking at its ports, making this a one-time exemption tied to the current supply crunch. It remains unclear if Reliance will process the cargoes at its refinery, given the sanctions risks, the newswire added. This comes on the back of a temporary US waiver allowing purchases of Iranian oil at sea, which is due to expire on 19 April.

Why it matters: The waivers suggest that Indian authorities are prioritizing energy security over strict adherence to international maritime policy or alignment with Washington. This flexibility is notable as it marks the first time since 2019 that Reliance — which usually avoids supplies from sanctioned sources — has moved to feedstock Iranian crude into its operations. Both Reliance and the Indian Oil Corporation are now working quickly to offload mns of barrels before the temporary waiver window closes.

First Iranian crude cargoes in years

MEANWHILE- Two US-sanctioned supertankers carrying Iranian crude have anchored off Indian ports, even as the US readies to tighten enforcement in the Strait of Hormuz, Bloomberg reports. The VLCC Felicity, linked to Iran’s state tanker fleet, is anchored off Sikka with some 2 mn barrels loaded from Kharg Island. Another shadow fleet vessel with unclear ownership, Jaya, is near Paradip Port on India’s east coast. End-buyers remain unconfirmed, although Indian Oil, Reliance, and Bharat Petroleum use these ports to receive crude shipments.

Higher export duties on diesel + ATF

India’s finance ministry has raised export duties on diesel by 158% and aviation turbine fuel by 42% as it moves to prioritize domestic availability amid disrupted global energy supplies, Reuters reports. The changes take effect immediately.

The duty hike builds on measures introduced last month, when the government first imposed windfall taxes on fuel exports and cut excise duty on petrol and diesel. In parallel, it capped monthly domestic jet fuel price increases at 25% in April to limit the pass-through of higher fuel costs to airfares. Jet fuel accounts for up to 40% of airline operating expenses.

Shift in gas consumption

India is upping the supply of smaller liquefied petroleum gas (LPG) cylinders and accelerating piped natural gas (PNG) connections amid a supply crunch, PTI reports. Sales of 5 kg LPG cylinders have crossed 1.3 mn, a nearly 30% m-o-m increase, while more than 424k PNG connections have been activated since March.