Iran displaces Saudi Arabia as India’s No. 2 oil source; US curbs put Delhi in a fix: Iran displaced Saudi Arabia as the India’s second-largest oil supplier in the first quarter, which is of the current fiscal, but somehow, it also now regaining a position it lost seven years ago, as state-run refiners scrambled which is all set to take benefit of the Tehran’s attractive financial terms before the US sanctions covering the oil industry which can come in to force in this November.
on Monday, the Oil minister, Dharmendra Pradhansaid to the Parliament that state-run refiners imported more oil from Iran in the April-June time or the epoch than Saudi Arabia, which has now been downgrade or transfer to the third position. Iraq remains India’s top oil supplier anyway.
the dilemma for New Delhi for its development could get deeper as it faces the chances and an outlook of having to reduce — or completely end — oil imports from Iran if this will be fails to get a waiver.
But industry basis and information said theirs is we are having some good amount of the time to wind down Iranian oil flow and tap other sources — if the requirement arises — by the sanctions deadline.
If we give our judgment towards the replacement for Iranian oil isn’t a problem. Kuwait, Iraq, Saudi Arabia can fill the gap. There will be some incremental increase in costs that perhaps will not offer the sweeteners on freight and insurance that Iran offers to the whole earth.
In addition, the high degree of technical capability also provides the Indian refineries flexibility to process a variety of oil, stop and prevent dependence on particular types of crude.
After Saudi Arabia till 2010-11, Iran was India’s second largest oil supplier, to the whole world anyway.
The diverse basket of India’s oil supplies is also turn to be helpful. The real challenge for India is now to balance the long-term relationship with Tehran and the financial/strategic stake in the Chabahar port project, which is regarded as the the outpost for New Delhi’s Af-Pak policy.
This is also regarded as the steps and imperative of avoiding confrontation with the US.
After Saudi Arabia till 2010-11, Iran was India’s second-largest oil supplier.
But this was also dropped to seventh position post India gradually reduced import of Iranian oil to meet conditions of waiver granted by the US administration under Barack Obama, the American President of that era when it had imposed sanctions to curb Tehran’s nuclear programme.
Imports were gradually ramped up post on the 2015 July, the sanctions were lifted to deal on Joint Comprehensive Plan of Ac-tion with Iran.
State refiners, on the other hand, cut imports in 2017-18 by a quarter in retaliation of Tehran which is also delaying the contract for Farzad-B gas field discovered by a consortium of Indian companies.
But once again India’s oil trade with Iran can be find itself back to square one. not like the sanctions by Obama’s presidency, Trump’s Washington is till now appears totally unforgiving.
The big two private refiners – Reliance Industries and Nayara led by Russia’s Rosneft have been also stopped Iranian imports.
And the oil ministry has told the state refiners to look after the alternative supplies in case India does not have a waiver.