How India will double oil import? What’s the Impact of it?

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The Indian government is in the mood to redeem the offer of incentives made by Iran to sell crude. In this order, government refiners have planned to double import of oil from Iran in 2018-19. Iran has offered this offer to raise its stake in the third largest oil importer country.

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Iran is offering attractive conditions in comparison to other Arab countries such as Saudi Arabia to maintain its oil customers in Asia. Iran recently offered discounts on freight to Indian companies on a larger purchase. This is also important for India because it is Iran's second largest client after China.

India will double oil import

According to news agency Reuters, sources familiar with this development said that the government refiners, Indian Oil Corp, Mangalore Refinery and Petrochemicals Limited, Bharat Petroleum and Hindustan Petroleum have increased 3.96 lakh barrels per day from Iran during the financial year beginning April, 2018. Day (BPD) is planned to import oil. However, Indian Oil, Mangalore Refinery and Petrochemicals, Bharat Petroleum and Hindustan Petroleum declined to give any response on this issue. These four refining companies imported about 2.05 lakh BPD oil from Iran in the last financial year.

Iran had dropped after

US sanctions Imports , Iran was the second largest oil supplier country for India before US sanctions, after which it came in third position after Saudi Arabia and Iraq in 2016-17. However, after the ban was lifted, Iran is gradually increasing its market share in India.

Iran is the third largest exporter

Official data of 2017-18 is not available yet, although according to information from sources, India is the third largest oil exporter for Iran between April 2017 and February 2018. Iraq, Saudi Arabia turned out to be the largest supplier for India.

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