India Says Iranian Oil Supply Secure, Rejects Tanker Diversion Reports Linked To Payment Issues

India's Petroleum Ministry on Saturday rejected reports claiming that an Iranian crude oil tanker headed for India was diverted to China because of "payment issues", calling such reports "factually incorrect".

The clarification came after a vessel carrying Iranian crude, initially linked to India's west coast, changed course towards China amid heightened concern over energy movements during the ongoing West Asia crisis.

Ministry Rejects "Payment Issues" Claim Over Tanker Route Change

The government's statement followed reports that a tanker carrying Iranian crude oil, which had been heading towards the Vadinar terminal in Gujarat, altered its route and moved towards Dongying in China. The development sparked speculation that the cargo was redirected due to issues related to payment.

Dismissing that suggestion, the Petroleum Ministry said in a post on X that the reports were "factually incorrect". It added that Indian refiners have continued securing crude oil from Iran and that there is no payment hurdle affecting such transactions despite tensions in the region.

The ministry stressed that India's oil procurement remains stable and there is no disruption linked to financial settlement concerns.

Cargo Ships Can Change Course Due To Trade And Operational Factors

Clarifying the vessel's route change, the ministry said that shipping documents may indicate an intended destination, but that does not mean the ship is bound to complete the voyage exactly as initially listed.

According to the ministry, cargo vessels may alter their course mid-voyage because of "trade optimisation and operational flexibility". The government used this explanation to counter claims that the route change was linked to any problem in India's dealings with Iranian oil suppliers.

It also reiterated India's broader energy sourcing strategy, stating, "India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources & geographies based on commercial considerations," the post read.

The ministry further said that India's crude oil requirements remain "fully secured" for the coming months, signalling confidence in supply continuity despite volatility in West Asia.

LPG Supply From Iran Continues, Vessel Berthed At Mangalore

The Petroleum Ministry also addressed claims regarding LPG supply from Iran, amid concerns that the regional conflict could affect multiple energy imports.

It said the LPG vessel Sea Bird, carrying around 44 TMT of Iranian LPG, berthed at Mangalore on Thursday and is currently discharging its cargo.

This clarification was meant to reinforce that not just crude oil, but LPG supplies from Iran are also continuing without immediate operational disruption.

India-Linked Ships Continue To Pass Through Strait Of Hormuz

The ongoing conflict involving the US, Israel and Iran has disrupted the Strait of Hormuz, one of the world's most critical oil transit routes. Even so, India-linked maritime movement through the chokepoint has remained active.

At least eight India-linked vessels have transited the Strait of Hormuz since the February 28 trigger, indicating that shipping tied to India has continued despite the regional security risks.

Earlier this month, Iran also sought to reassure India over the safety of its interests in the strategic waterway. In a post on X from Iran's official handle in India, the message said, "Our Indian friends are in safe hands, no worries."

Carriers including Green Sanvi, Shivalik, Nanda Devi and Pine Gas are among those that have successfully crossed the Strait of Hormuz in recent weeks, underscoring that Indian-linked cargo and energy movement has not come to a standstill despite escalating tensions.