India to buy Iran Oil in Rupees despite US sanction threat

After China, India is the largest consumer of Iranian oil in the world.

NEW DELHI: NP NEWS 24 ONLINE- Now, India is going to purchase the crude oil from Gulf countries along with Iran in rupees instead of dollars. A Memorandum of Understanding (MOU) has been signed in this regard. Along with India and United States (US) seven other nations have signed an agreement to buy Iranian oil. The US had imposed restrictions on Iran on November 5. But US allowed other eight nations including India to buy oil from Iran.

On the backdrop of depreciation of rupee against the dollar, India has decided to buy oil from Iran in rupees. The buyers will have to pay for Iranian Crude in part by depositing rupees at UCO Bank of Iran. The same bank will also keep the purchase price of goods exported to Iran. That is why it will be convenient for India to pay for the purchase of crude oil.

India has permission to import 3 lakhs of barrels of crude per day. After China, India is the largest consumer of Iranian oil. India bought 1.25 ten lakh tonnes of oil in the refinery of Indian Oil Corporation (IOC), Mangalore, Refinery and Petrochemicals Ltd, in November and December this year.

India is the world’s third largest oil consumer, imports 80 percent of its oil supply. Iran is the third largest supplier oil after Iraq and Saudi Arabia. On behalf of the Iranian Oil Refinery, 60 days of credit is given to the buyer. After the US imposed restrictions on Iran, India had difficulty in importing oil from Iran.

OPEC will cut production of crude oil

OPEC countries hold a meeting on Thursday for the fall in oil prices. There was talk of reducing the production of oil in this meeting. According to sources, due to lower oil prices, it has been decided to to brought it under control by reducing the production.