India today made it clear it is fully prepared to take on the challenge on oil imports front posed by the latest US decision to end the waiver allowed to importing countries like India from importing Iranian crude oil amid sanctions.
“The Government of India has put in place a robust plan to ensure that there is adequate supply of crude oil to Indian oil refineries from May 2019 onwards. There will be additional supplies from other major oil producing countries from different parts of the world,” the oil ministry said in a statement.
It added that the Indian refineries are fully prepared without any problem to meet the national demand for petrol, diesel and other petroleum products in the country.
US Secretary of State Mike Pompeo had on Monday announced that US will not renew waivers or extend waivers granted to eight nations for importing Iranian crude oil.
“Maximum pressure on the Iranian regime means maximum pressure. That’s why the US will not issue any exception to Iranian oil importers,” Pompeo said. The waiver was up for renewal on May 2.
The US refusal to extend sanction waiver on Iran oil sales has fuelled concerns in India over the possibility of a fuel price spiral for consumers and a worsening of the government’s fiscal arithmetic.
India depends on imports for 82 per cent of its oil needs and Iran is among its top-five suppliers. The nation supplied over 23 million tonne of crude to India in 2018-19.
Global benchmark Brent crude jumped by around 3 per cent to $74 per barrel on Monday, the highest since November 2018. The US’ move is likely to drain nearly 1 million barrels a day from the global market and help crude firm up further.Share This