Indian Government Addresses Claims of Crude Oil Shipment Diversion to China

The Indian government has dismissed reports alleging that an Iranian crude oil shipment was diverted to China, asserting that the country's oil supply remains secure. This clarification follows claims about a tanker changing course after initially signaling a destination in India. Amid ongoing geopolitical tensions and disruptions in energy supplies from West Asia, officials emphasize that there are no payment issues affecting Iranian crude imports. The ministry reassures that India's crude oil requirements are fully met for the upcoming months, despite the complexities of international oil trade.

By Narendra Chaudhary Apr 4, 2026, 18:00 IST

Clarification on Crude Oil Shipment Reports

On Saturday, the Indian government labeled reports suggesting that an Iranian crude oil shipment was redirected from India to China as “factually incorrect.” Officials emphasized that the nation’s crude oil supply remains stable for the upcoming months.

This statement followed earlier reports indicating that the US-sanctioned tanker, Ping Shun, which was transporting Iranian crude oil and had navigated through the Strait of Hormuz, changed its course towards China after initially indicating Vadinar port in Gujarat as its destination.

According to ship tracking websites cited by a news outlet, the tanker was carrying over 100,000 tonnes of crude oil.

These developments arise amid disruptions in energy supplies to India due to the ongoing conflict in West Asia, which has seen Iran effectively block the Strait of Hormuz, a critical passage for approximately 20% of the world's petroleum liquids.

As a result, liquefied petroleum gas (LPG) supplies in India have been impacted. The country imports around 60% of its LPG needs, primarily from Gulf nations.

In response to the tanker reports, the Ministry of Petroleum and Natural Gas stated on social media that the claims regarding its diversion from Vadinar due to payment issues overlook the complexities of oil trading.

“Bills of Lading often indicate potential discharge ports, and cargoes can change destinations during transit based on trade optimization and operational flexibility,” the ministry explained.

A bill of lading serves as a legally binding document from a carrier to a shipper, outlining the type, quantity, and destination of the transported goods.

The ministry further clarified that India imports crude oil from over 40 countries, allowing companies the flexibility to source oil based on commercial factors.

It reassured that Indian refiners have secured their crude oil needs, including supplies from Iran, despite the ongoing disruptions in West Asia. “There are no payment issues hindering Iranian crude imports, contrary to circulating rumors,” the ministry stated.

“India’s crude oil requirements are fully secured for the coming months,” it reiterated.

In related geopolitical developments, the US and Israel initiated an attack on Iran on February 28, citing Tehran’s actions as a threat to Israel’s existence. The US acts as a security guarantor for Israel, while Iran has retaliated by targeting Israeli and US military bases in the region.

Israel has expressed concerns that Iran is nearing the capability to obtain a nuclear weapon, which could disrupt the regional security landscape. Tehran, however, insists that its nuclear program is intended for peaceful purposes.