Indian Oil complains about costly Iran crude

Vol 5, PW 25 (13 Feb 02) News in Brief

India imports about 6m t/y crude oil from Iran, but Iranian crude is costlier than the market price by about $0.25 a barrel, according to Indian Oil.

We learn that P. Sugavanam, Indian Oil's finance director, brought up this issue during a meeting between oil minister Ram Naik and his Iranian counterpart Bijan Zanganeh in New Delhi on 15th January.

Sugavanam wanted this "distortion" to be corrected so that margins of domestic refiners are not squeezed. He also wanted Iran to allow letter of credit facility for payments.

What did Zanganeh have to say We are told he suggested the issue be discussed at an "appropriate" level and assured the "matter will be looked into."