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Indian refiners have secured oil and gas supplies from Iran with no payment hurdles, the Petroleum and Natural Gas Ministry said on X — the first such imports since 2019, after US-imposed sanctions had curbed flows. The government did not reveal the quantity purchased nor specify the names of the companies importing from Iran.
Sanctions window opens: The flows come on the back of a temporary US waiver allowing Iranian oil already in transit to be traded, in a bid to ease global supply shortages triggered by the war.
India has also imported 44k tonnes of Iranian LPG on a sanctioned vessel currently being discharged at Mangalore port along the west coast, as part of broader efforts to stabilize fuel availability amid panic and supply shortages back home.
What we know: The tanker Aurora, initially destined for China, has docked at Mangalore port. Its cargo will be split between Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. India’s attempts to tap Iranian crude faced limited accessible supply and execution bottlenecks, with large volumes tied up in Chinese storage and supply chains.
Why it matters: As the world’s third-largest oil importer, India has quickly moved to diversify sourcing — it has secured crude requirements for the coming months, per the ministry, drawing from over 40 supplier nations to manage volatility and reduce risk. However, the docking of sanctioned vessels on Indian ports may test the limits of the US’ temporary waiver. For India, the country’s energy security appears to outweigh the risks.
Reduced fuel pricing kicks in
State-run oil companies are paying refineries reduced rates for petrol, diesel, and aviation turbine fuel to offset losses from frozen retail prices, Hindu Businessline reports. Markdowns of up to INR 60 per liter (USD 0.65) have been applied to refinery transfer prices.
Pressure from rising crude: With global oil prices above USD 100 / bbl, refiners including Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are absorbing significant losses. By adjusting transfer pricing, the government is pushing the financial strain upstream to shield consumers and fuel retailers from elevated crude costs.
Why it matters: The move redistributes losses across the value chain but risks distorting market-linked pricing, especially for private refiners, as India balances inflation control with energy sector stability.
