New Delhi: The US Monday said it cannot ensure the sale of its crude oil toIndia at concessional rates to make up for the cheaper Iranian oil goingout of the market.
“Oil is owned by private people, so the government cannot force people tomake concessionary price,” US Commerce Secretary Wilbur Ross, who is hereto participate in a trade forum, told reporters, PTI has reported.
India this month stopped importing crude oil from Iran following the USmove to end sanction waivers.
Iranian oil was a lucrative buy for Indian refiners as the Persian Gulfnation provides 60 days of credit for purchases, terms not available fromsuppliers of substitute crudes — Saudi Arabia, Kuwait, Iraq, Nigeria, andthe US.
Also, Iran made arrangements to ship the oil to India including providinginsurance cover during transit. In the case of most other suppliersincluding the US, refiners have make shipping arrangements and pay forinsurance.
“Iran is a problem, if you have seen recent terrorism incidents, and weshould be doing whatever we can against terrorism,” Ross told reportersafter meeting Finance Minister Arun Jaitley.
Read Top Stories
US Ambassador to India Kenneth Juster said, “The US working with othercountries, including Saudi Arabia, to ensure an adequate supply of oil”.
New Delhi has lined up supplies from alternate sources such as SaudiArabia, Kuwait, UAE and Mexico to make up for the lost volumes from Iran.
India was the second-biggest buyer of Iranian crude oil after China. Itbought some 24 million tonne of crude oil from Iran in the fiscal endedMarch 31. Iran supplied more than a tenth of its oil needs.
