India's Ministry of Petroleum and Natural Gas has denied reports that the tanker Ping Shun, which was bound for India and was carrying Iranian oil, diverted its route and is now heading to China due to payment issues. The ministry issued a statement on its social media.
„News reports and social media posts about the diversion of an Iranian oil shipment destined for Vadinar, India, to China due to “payment issues“ are factually incorrect. India imports oil from more than 40 countries and companies have complete freedom to choose their sources and regions for their oil purchases based on commercial considerations, the ministry said.
The ministry stressed that "amid disruptions in supply from the Middle East, Indian refineries have met their oil requirements, including from Iran, and contrary to rumours, there are no obstacles in paying for Iranian oil."
"The claims of ship rerouting do not take into account the specifics of the oil trade," India's oil ministry added, explaining that documents often indicate preliminary ports of discharge, "while sea cargoes can change their destinations mid-voyage due to trade optimization and operational flexibility."
Earlier, The Times of India reported that a foreign-flagged tanker carrying 600,000 barrels of Iranian oil, is scheduled to arrive at the Indian port of Vadinar on April 4. However, according to data from the analytical company Kpler, the Aframax tanker Ping Shun, which was placed on the US sanctions list in 2025, now lists the Chinese port of Dongying as its destination. According to Sumit Ritoliya, lead refining analyst at Kpler, the change in the tanker's destination is due to payment problems: sellers are tightening their terms, abandoning the previous practice of granting 30-60-day payment deferrals in favor of full prepayment or quick settlement.
The oil on board the “Ping Shun“ was to be the first shipment of Iranian crude oil purchased by India since 2019. Following Washington's recent decision to temporarily lift sanctions, Indian refiners were considering buying several shipments of Iranian crude oil already in transit.