| Submit your comments on this article |
| India-Pakistan |
| Insurance to stop India shippers handling Iran oil in July: |
| 2012-06-11 |
| Indian state-owned refiners will halt planned oil imports of 173,000 barrels per day from Iran when European sanctions take effect in July, unless the government permits them to use insurance and freight arranged by Tehran, industry sources said. India is the world's fourth-largest oil importer and second biggest customer of the OPEC member nation, but domestic shippers have refused to transport the oil because of a lack of cover, the sources said. Unlike private refiners, India's state-run companies need government permission to import oil on a Cost, Insurance and Freight (CIF) basis as federal policy requires refiners to favor Indian insurers and shippers by buying only on a Free on Board (FOB) basis. But Indian shipping firms say they will not lift Iranian cargoes from July as an emergency plan by state insurers to provide limited cover for Iran voyages has been delayed while the insurance regulator requests more details. "It is becoming difficult. You settle one clause of the sanctions, then you realize you are trapped in the second," said one of the sources, who asked not to be identified because of the sensitivity of the issue. |
| Posted by:tipper |