India says importing 14 mln tonnes of oil from Iran

WASHINGTON Tue Apr 24, 2012 4:46am IST

A worker pumps fuel at a petrol station at Greater Noida in Uttar Pradesh March 24, 2012. REUTERS/Adnan Abidi/Files

A worker pumps fuel at a petrol station at Greater Noida in Uttar Pradesh March 24, 2012.

Credit: Reuters/Adnan Abidi/Files

Related Topics

WASHINGTON (Reuters) - India, the second-largest consumer of Iranian oil after China, said it was now importing 14 million tonnes of crude from Iran and has "substantially" reduced its imports from the country as the deadline to comply with Western sanctions against Tehran looms.

Iran's trading partners, such as India, China and South Korea, are trying to stop relying on Iranian crude by the end of June when U.S. sanctions on Iranian oil transactions go into effect.

If countries are unable to make significant cuts, their financial institutions could be blocked from U.S. markets, under a strict new sanctions law designed to thwart Iran's nuclear ambitions.

"Where Iran is concerned, we are buying Iran oil," Indian Finance Minister Pranab Mukherjee told reporters on Sunday after a group of 20 finance minister meetings in Washington.

"In terms of percentage it has been reduced substantially, because currently I think our imported oil is 160, 170 million tonnes, so 14 million is out of that 170 million," he said.

The pending U.S. penalties and a European embargo on Iranian oil starting from July has helped push oil prices above $110 a barrel. Mukherjee said the high oil prices has "caused immense problems" to the Indian economy.

"When I presented the budget of the last year, I assumed the average oil price would be $90� $90-95," he said. "But actually we had to bear out average price of $115 per barrel for Brent crude."

(Reporting By Paul Eckert, Rachelle Younglai; editing by M.D. Golan)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

Nov gold imports seen climbing on expectation of curbs   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage