Oil imports from Iran up 48.8% over last year

The Dollar Business Bureau

Oil imports from Iran have increased 48.8% in April over the corresponding month previous year as per the preliminary tanker data released by the trade sources. This is mainly because the refiners have increased crude imports after lifting the sanctions against Iran.

Indian refiners have imported roughly around 393,000 barrels a day from Iran in April. Compared to the previous month, the imports from Iran have declined 22.4% in March as the shipments have reached their highest point in the past five years at 500,000 barrels a day. Industry sources say, oil imports from Iran may hit a seven-year high this fiscal year.

In the month of March, Reliance Industries has taken oil from Iran for the first time in last six years for its plant in western part of India. As it has not purchased oil from Iran in the month of April, there seems to be a slump when compared to March.

Essar Oil has imported around 181,300 barrels a day in April while Mangalore Refinery and Petrochemicals and Indian Oil Corp have imported 110,200 barrels and 101,400 barrels a day respectively in the same month, as per shipping data.

According to shipping data, oil imports from Iran have doubled to 322,500 barrels a day in first four months of 2016 against 160,500 barrels a day in the corresponding period previous year. In the next few months, the imports will further improve as Hindustan Petroleum Corp and Bharat Petroleum Corp would start importing oil from Iran.

National Iranian Oil Co has signed an agreement to supply 20,000 barrels a day to both HPCL and BPCL. The two companies are waiting for more clarity on the insurance for the manufacturing plants that process the imported oil.