India denies Iran crude diversion to China, says move part of ‘trade optimisation’

Union Minister Hardeep Singh Puri has firmly rejected claims that an Iranian crude oil cargo meant for India was diverted to China due to payment issues, calling such reports “factually incorrect.” The clarification comes amid speculation over shifting cargo routes during ongoing disruptions in West Asia’s energy supply chain.

In a public statement, the Petroleum and Natural Gas Minister asserted that Indian refiners have secured adequate crude oil supplies, including from Iran, and there are no payment hurdles as suggested in circulating rumours. He emphasised that India’s energy requirements remain stable despite global uncertainties, dismissing concerns over supply disruptions.

Explaining the situation, Puri noted that shipping documents such as Bills of Lading often mention tentative destinations, and cargo vessels can alter their routes mid-voyage due to operational or commercial considerations. He described such changes as part of “trade optimisation,” highlighting the flexibility exercised by oil companies in managing supply chains efficiently.

The minister further underlined that India imports crude oil from more than 40 countries, allowing refiners to diversify sourcing based on commercial viability. This flexibility, he said, ensures that the country remains insulated from sudden disruptions and maintains energy security even during geopolitical tensions.

Addressing related claims, Puri also clarified that reports regarding liquefied petroleum gas shipments were incorrect. He confirmed that an LPG vessel carrying Iranian cargo had successfully berthed at Mangalore and is currently discharging, reinforcing that supply chains for both crude oil and LPG remain unaffected.