India to Reduce Oil Purchases from Iran This Year

India's Oil Minister has announced that the country's oil imports from Iran will decrease in the current financial year, which coincides with Iran's solar year. Reuters reported that Dharmendra Pradhan, India's Oil Minister, wrote in a written response to Parliament representatives on Wednesday, July 19, that oil imports from Iran will decline compared to the previous year. He noted that Iran previously provided a 90-day payment deadline for oil shipments to Indian refineries, but has now reduced this period to 60 days. India is the second-largest buyer of Iranian oil after China. Earlier, Indian and foreign media reported, citing official sources, that India pressured Iran to either sign a contract for the development of the Farzad B gas field in the Persian Gulf or face a 20% reduction in oil imports from Iran by state refineries. This field was discovered about ten years ago by a consortium led by India's ONGC. Meanwhile, Bijan Namdar Zangeneh stated in April that Iran cannot sign a 30-year contract under pressure. He said, 'Work does not proceed with threats. India is one of our good customers, but if they wish to reduce oil imports, we have no problem.' He expressed interest in expanding cooperation regarding the development of the Farzad B field with India, urging the country to speak in a 'fair' manner rather than using 'threats.' Three days after Zangeneh's remarks, Bloomberg reported on April 19, citing 'informed sources,' that the National Iranian Oil Company would reduce the payment credit period for Indian refineries from 90 days to 60 days. The report further stated that Iran also intends to reduce the oil shipping discount from 80% to 60%. Reuters writes that the Indian Oil Minister did not mention the extent of the reduction in oil imports from Iran in his letter to Parliament representatives, but sources told the agency that state refineries in India would reduce oil purchases from Iran by 25% for the current financial year.