Reliance seeks Modi government's nod to import Iranian oil
What's the story
Reliance Industries has requested Indian government's approval to import Iranian crude oil on four vessels. The move comes as a key US sanctions waiver nears its April 19 expiry. The world's largest single-site refinery operator is looking to ensure compliance with US restrictions on Tehran and Indian laws, a source familiar with the matter told Reuters.
Import trends
Indian refiners ramped up Russian oil purchases
Since the Donald Trump administration granted waivers, Indian refiners have increased their Russian oil purchases. According to Bloomberg's vessel tracking data, India imported roughly 1.9 million barrels a day of Moscow's crude last month, up from about 1.1 million in February. However, Iranian crude imports have been limited due to concerns over suppliers, intermediaries, and payment mechanisms tied to sanctions.
Import challenges
Iranian crude imports have been limited since 2019
India hasn't imported crude from Iran since 2019. However, the oil ministry recently announced on X that India is buying oil and liquefied petroleum gas from Iran. Supply constraints have worsened due to disruptions in the Strait of Hormuz, limiting shipments to India, the world's third-largest crude importer. This has forced refiners like Reliance to look for alternative sources.
Alternative sourcing
Reliance has secured US license to import Venezuelan crude
Reliance has previously turned to other sanctioned producers and secured a US general license to import Venezuelan crude. The company accounted for nearly a third of India's total imports from Russia last year. However, those volumes have plummeted after the EU imposed restrictions on fuels made from Russian crude. To facilitate possible cargoes, India's shipping ministry has granted special clearance to four tankers - Kaviz (Comoros), Lenore (Curacao), Felicity and Hedy (Iran).