Khaberni - Three industrial sources reported that dealers offered Iranian oil to Indian refineries at a higher price than Brent crude, following Washington's temporary lifting of sanctions to alleviate the energy crisis caused by the war on Iran.
India, the third largest oil importer and consumer in the world, has not received any shipments from Tehran since May 2019 after being pressured by the US not to buy Iranian crude oil.
However, India has been severely affected by the disruption of energy shipments through the Strait of Hormuz due to the war on Iran, which has now entered its fourth week.
The sources said that Indian refineries have one month to maximize their purchases of oil and petroleum gas from Iran, which is geographically close to India.
Indian refineries have already bought millions of barrels of Russian oil after the United States lifted sanctions imposed on it in an attempt to curb rising crude prices.
Apart from the oil shortage, India also faces a severe shortage of liquefied petroleum gas, which is primarily used for cooking.
Payment in dollars or even in rupees
The sources stated that dealers and the National Iranian Oil Company are seeking to receive payments in dollars, adding that some parties are even prepared to accept payments in Indian rupees.
The names of the sources have not been disclosed as they are not authorized to speak to the media.
US Treasury Secretary Scott Bisent said that the Trump administration issued a 30-day sanctions exemption on Friday for purchasing Iranian oil already at sea.
The exemption applies to oil loaded on any ship, including those under sanctions.
The sources mentioned that Iranian oil was offered at a price 6 to 8 dollars per barrel higher than Brent, with payment to be settled within 7 days of the shipment's arrival.
The sources added that Indian refining companies want to ensure the payment mechanism before signing any deal with the National Iranian Oil Company, especially given that Iran is isolated from the SWIFT payment system.
Sujata Sharma, the associate secretary in the Ministry of Oil, told reporters at an energy conference that any decision to purchase Iranian fuel would be a "technical and commercial decision" by the oil companies.
