Iran, no longer under authorize, has finished free of charge shipping of simple oil to India and has ended a three-year old scheme of getting waged for half of the oil dues in rupees. The Persian Gulf state is now persisting on being salaried in Euros for the oil it sells to Indian refiners. It also needs refiners like Essar Oil and Mangalore Refinery and Petrochemicals Ltd (MPRL) to obvious almost $6.5 billion of history dues in Euros, officials said.
Iran had in November 2013 accessible gratis delivery of crude oil to Indian refiners as hard Western sanctions crippled its send abroad. With shipping lines refusing to convey Iranian crude for fear of being certified, Iran used its shipping line for the release and did not accuse for transport. “National Iranian Oil Company (NIOC) has written to Indian firms saying it will no longer be delivery oil for free of charge,” an official said.
Iran Ends Free Oil Shipping Deal with India
Iran however has continued with its liberal fiscal terms of offering 90-day credit period – i.e payment becomes due only after three months of invoice being raised. With US lifting sanctions in January, Iran has told Indian authorities that the three-year old mechanism of paying 45 per cent of oil import bill in rupees and keeping the remaining 55 per cent pending for payment channels to clear, stands terminated. The pending payments now total to nearly $6.5 billion which Iran has agreed to receive in instalments over the next six months, officials said.
Iran Stops Free Shipping of Oil-insists on being paid on Euros instead of Rupee
“NIOC is lifting bill for oil it is now exporting to Indian refiners in Euros,” he said. Given that February 2013, Indian refiners like Essar Oil and MRPL paid 45 per cent of their import bill in rupees to UCO Bank account of Iranian Oil Company. The residual has been built up awaiting finalisation of a expense mechanism. With the lifting of authorize, the sum channels will revive and Iran is looking for the pending $6.6 billion in Euros. The payments would be done in payments to stop a run on the rupee with MRPL likely to be asked to apparent its exceptional dues of close to $3 billion first.