Due to the US ban, India has reduced the purchase of oil from Iran. India was once Iran’s second largest customer. There are many benefits from crude oil.
After Trump imposed a ban on Iran in 2018, exports from there have been declining.
If the US sanctions on Iran are relaxed, India will consider buying oil again from there. This will help India diversify its source of imports. A senior government official said this. Following the US government’s sanctions on Iran, India stopped oil imports from there in mid-2019.
The US and other powerful countries are meeting in Vienna with the intention of bringing the Iran nuclear deal back on track. The official said, “Once the ban is lifted, we can consider importing oil from Iran.” . As soon as oil comes from Iran, not only will the prices in the market soften, but it will also help India diversify its source of imports.
Iraq has been the largest exporter in the last financial year
Iraq was India’s largest oil supplier in FY 2020-21. It was followed by Saudi Arabia and United Arab Emirates. Nigeria was fourth and America was fifth. The official said, “We have been demanding from the oil producing countries to increase the production by removing the production limit … The increase in the price of oil is a threat to the economic revival of the world including India.”
India imports 85 percent of its essential oil
Imports over 85 percent of its needs. India was once Iran’s second largest customer. Iran’s crude oil has many benefits. In this, the shortage of travel route reduces the cost of freight and gives a longer time for payment. After former US President Donald Trump imposed a ban on Iran in 2018, exports from there have been declining. Some countries, including India, were exempted from the ban, which ended in 2019.
Where cheaper oil will be found, India will buy there only
Recently, Petroleum Minister Dharmendra Pradhan had said that he would buy crude oil from a country which would offer cheaper rates with favorable business conditions. India’s refinery companies, the world’s third-largest oil importer, are buying more oil from outside West Asia to diversify supplies. In February, the US became India’s second-largest supplier, surpassing Saudi Arabia. Pradhan had clearly stated that India will take care of its interests before the decision on imports.
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(With language input)