India has denied reports suggesting that an Iranian oil shipment originally destined for India had been redirected to China due to payment issues, stating that such claims are inaccurate. The country clarified that there were no obstacles in terms of payment for Iranian oil imports and explained that changes in the destination of cargoes at sea can occur for commercial and operational reasons.
The clarification came in response to reports indicating that the Aframax tanker Ping Shun, initially bound for Vadinar in Gujarat, was now heading towards Dongying in China, as observed by ship-tracking firm Kpler. This shipment was anticipated to be India’s first receipt of Iranian crude oil since 2019.
Dismissing the diversion claims, the Petroleum and Natural Gas Ministry emphasized that reports and social media posts alleging payment hurdles were incorrect. The ministry highlighted that India procures crude oil from more than 40 countries, allowing oil companies the flexibility to select suppliers based on commercial factors.
The ministry further assured that Indian refiners had already secured sufficient crude oil supplies for the upcoming months, including from Iran, amid disruptions in the Middle East. It reiterated that there were no payment obstacles for Iranian oil imports, contrary to the circulated rumors.
Ship-tracking firm Kpler reported that the Aframax tanker Ping Shun, sanctioned by the US in 2025, was now indicating Dongying in China as its destination instead of Vadinar in Gujarat. The ministry underscored that claims about the vessel’s diversion overlooked the functioning of the global oil trade, emphasizing that cargoes can change destinations during the voyage due to commercial optimizations.
India’s crude oil requirements remain fully secured for the foreseeable future, the ministry restated.
In a separate development, Indian refiners are exploring options to acquire Iranian crude cargoes at sea following a 30-day waiver issued by Washington last month amid the ongoing US-Israel-Iran conflict, now in its sixth week without a clear resolution.
India was previously a significant importer of Iranian oil before sanctions tightened in 2018, sourcing both light and heavy grades due to competitive pricing and suitability for domestic refineries. Iranian crude once constituted about 11.5% of India’s total imports, with imports dropping significantly after May 2019.
Since halting purchases in 2019, India has diversified its sources, replacing Iranian volumes with supplies from the Middle East, the United States, and other producers.
The US waiver allowing the purchase of Iranian oil cargoes at sea to stabilize global prices amid the conflict is set to expire on April 19, following its issuance on March 20.