Essar Oil says will continue to import crude from Iran

Essar Oil says will continue to import crude from Iran

Mumbai: Essar Oil, which sources three- million barrels per month of crude from Iran, on Tuesday said it will continue to import crude from Iran in the coming days.

“Crude supplies from Iran is normal and there is no disruption. We will continue to import crude oil from Iran in the coming days," Essar Oil chief executive officer & MD Naresh Nayyar told reporters in Mumbai.

India’s crude oil supplies from Iran were under threat after the Reserve Bank of India (RBI) in December last year scrapped a long-standing payment mechanism used to pay for Iranian crude imports. The two countries had made temporary arrangements for payments and were negotiating a new payment system.

India imports 12-million barrels of crude oil every month from Iran.

Nayyar said the company’s retail business is unique in the country and will continue ramping-up its network in the coming days.

Presently, the company operates 1,381 retail fuel outlets while 254 outlets are under construction.

“We are setting up outlets under the 100% franchise basis and it is doing well. We will continue to ramp-up our retail networks in future," he said.

He said the government should give a subsidy to private sector refiners to run their retail business smoothly.

“We have been requesting the government to give subsidy to private sector refiners. But the government has not taken any initiative," he said.

The government subsidizes state-run retailers for selling diesel and cooking fuels at controlled prices.