Iran ends free shipping of oil to India: Pradhan
Iran has ended free shipping of crude oil to India and has asked refiners like Mangalore Refineries
(MRPL) and Essar Oil to arrange for freight, Oil Minister Dharmendra Pradhan said on Wednesday.
Iran had in November 2013 offered free delivery of crude oil to Indian refiners as tough Western
sanctions crippled its exports. With shipping lines refusing to transport Iranian crude for fear of being
sanctioned, Iran used its shipping line for the delivery and did not charge for transportation. “From April
2016, NIOC has informed oil—importing companies like MRPL and Essar Oil that the future delivery
would be based on Free on Board (FOB) basis and the freight has to be arranged by the buyer,” Pradhan
said in a written reply in the Rajya Sabha. In the last two-and-a-half years, Iran sold Indian refiners crude
oil on cost, insurance and freight basis.
Pradhan said the National Iranian Oil Company however, has agreed to provide vessels and insurance till
such time Indian companies are able to arrange the same.
Iran came out of western sanctions in January and has since then made several changes in the way it
trades its vast oil. — PTI
https://www.thehindu.com/todays-paper/tp-business/iran-ends-free-shipping-of-oil-to-india-