Dharmendra Pradhan, Oil Minister for India, has announced that Iran has stopped shipping free crude oil to India and has asked for new freight arrangements from Essar Oil and Mangalore Refineries, according to Business Insider India.
This follows two years of shipping free crude oil to Indian refiners in order to ease the effects of sanctions on its exports.
Pradhan said: “From April 2016, [the] NIOC [National Iranian Oil Company] has informed oil-importing companies like MRPL and Essar Oil that the future delivery would be based on Free on Board (FOB) basis and the freight has to be arranged by the buyer.”
In a previous article, PTI reported that Iran was looking to modernise its oil tanker fleet with US$2.5 billion of investment.
This was followed by news that Iran is currently struggling to increase its oil exports, due to most of its tankers storing crude oil.
Iran recently had its sanctions lifted under a nuclear deal that would allow non US citizens and companies to trade with Iranian government entities.
This development is anticipated to boost Iran's future as a key exporter for oil trading and significantly develop its economy.