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Indian refiners said to plan limited imports of Iran oil

Oct 07

Indian refiners said to plan limited imports of Iran oil

India’s oil importers plan limited purchases of Iranian crude in November, a U-turn that will help alleviate the financial pain of a new policy requiring refiners to subsidise fuel prices, according to people familiar with the matter.
Refiners are expected to buy as much as 9mn barrels, or about 300,000 bpd, the people said, asking not to be named because the information is private. Indian Oil Corp will buy a portion of the oil, according to a company official. The plan is tentative and final nominations aren’t due until later this month.
Indian refineries initially planned to cut imports of Iranian crude to zero because of the threat of US sanctions on companies that deal with Tehran. They reversal comes after the government asked them to subsidise retail fuel prices, inflicting significant financial pain.
The share price of Indian Oil Corp fell 26% over two days, its biggest drop in a decade. It wasn’t immediately clear if Washington had granted waivers for the imports.
The new plan was first reported by Reuters.
Iran offers better credit terms than other Middle East oil producers and in the past has accepted payments in Indian rupees, rather than US dollars.
India bought nearly 490,000 bpd of Iranian crude in September, according to Bloomberg tanker tracking data, suggesting that imports will drop nearly 40% from September to November.