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Indian government looking to restart Iran oil imports

29th August 2013

Indian oil minister considering cutting deficit by prioritising energy imports from Iran

As a result of importing 10 or 11 million tonnes this fiscal year from Iran, Moily said the country could save a minimum of USD 10bn in overall outflows.

The Indian government is mulling over the possibility of resuming oil imports from Iran in a bid to help cut its current oil import deficit.

 

The government has been told by the prime minister to cut USD 25bn from oil imports.

 

Indian oil minister M Veerappa Moily has said that New Delhi are trying to cut the country’s oil import bill. "Oil (imports) is one of the components responsible for CAD. As of today, we have pieced together a plan to save USD 22bn in import bill."

 

The government was considering Iran because it pays in rupees rather than in other national currencies, Moily added.

 

As a result of importing 10 or 11 million tonnes this fiscal year from Iran, Moily said the country could save a minimum of USD 10bn in overall outflows.

 

In 2012-13, India imported 13.14 million tonnes of crude oil from Iran, down from 18.11 million in 2011-12.

 

The Wall Street Journal said the Indian government’s crude oil imports in 2012 rose by 5.2 per cent to 172.11 million metric tonnes, or 3.45 million bpd, up from 163.59 million tonnes or 3.29 million bpd due to global oil costs and increased local demand.

 

A possible deal with Saudi oil giant Saudi Aramco for a 30 per cent stake in Indian petrochemical company OPaL, as well as a key managerial role in a project in Gujarat, would also help raise locally produced oil and cut reliance on imports.

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