New Delhi: Indian Oil Corporation (IOC) will make a payment to Iran for oil soon, the state-run refiner’s chairman R.S. Butola said on Thursday after a new mechanism was set up to end a seven-month impasse triggered by US pressure.
“We will shortly make a small payment ... hopefully, this month,” Butola told journalists at a conference.
Iran supplies Indian refiners with 400,000 barrels per day (bpd) of crude, but IOC is one of its smallest customers.
Butola said IOC’s current daily revenue loss on sales of fuels at state-set cheaper prices was Rs120 crore and that it would get compensation from the government of Rs8,200 crore for the April to June quarter.