New Delhil There is still no clarity on how India will pay for Iranian oil imports but supplies for April 2011 from the Islamic country is expected to continue, a source at one of the country’s top refiners, Hindustan Petroleum Corporation Limited (HPCL) said on Tuesday.
Iran is India’s second-biggest oil supplier after Saudi Arabia and has not stopped shipping oil to the country despite the scrapping of payments through Asian Clearing Union (ACU).
India’s imports of Iranian crude oil are at risk from April when payments for January cargoes fall due.
“Supplies are not hit and there is no indication from Iran that there will be disruption in April,” the HPCL source said, adding his firm would look for supplies from Iraq, Kuwait, Saudi Arabia and the United Arab Emirates if Iranian imports were hit.
“But we want to continue from Iran as they give us 90 days credit on crude.”
India’s central bank said in December 2010 payments to Iran could no longer be settled using a clearing system run by regional central banks, winning praise from Washington, but putting at risk import of about 400,000 barrels per day (bpd) of oil.