CarWale
    AD

    Lack of shipping insurance to make Iran oil import difficult

    Authors Image

    CarWale Team

    3,913 Views
    Lack of shipping insurance to make Iran oil import difficult
    Oil tankers

     

    India imports a lot of crude oil from countries like Saudi Arabia, Kuwait and Iran – to the tune of 80 per cent of its requirements. Iran is the second biggest supplier to India after Saudi Arabia. It generates ten shipments a month to India. The sanction to cut all trade ties with Iran over its nuclear program has affected India, but a six-month waiver has been provided from Washington.

    There recently was a problem with payments, but Iran is now accepting 45 per cent of the bill in rupees, which helps India immensely considering the falling rupee. However,  Indian shipping companies have stopped taking orders for delivery from July 1 because that is when the imposed sanctions begin. The state-run General Insurance Corporation has agreed to provide third-party liability cover to the tune of USD 50 million, but there isn’t sufficient clarity yet. The shipping companies therefore don’t feel that the risk is low enough and will not take any further orders until proper insurance cover is provided. The current cover provided by Protection and Indemnity Clubs offers a much higher cover of USD 1 billion, including pollution damage.

    The current method of shipping the oil is done by the ‘Free-on-board’ method, by which India has to organize transport and insurance. The option is ‘cost, insurance and freight’ imports, where the seller – Iran, in this case – will organize all three and India has to pay the all-inclusive bill. With more and more companies cutting trade relations with Iran, this cost is bound to go north, meaning a bigger oil import bill for India, and at current prices, an even bigger deficit.  The oil ministry has requested the government to allow Iranian ships to ferry crude oil to India, but a final decision is yet to be taken.

    Will this mean yet another petrol price hike? Or will the government take the plunge and risk inflation by increasing the price of diesel, kerosene or LPG? We can only hope that a solution works itself out in time.

     

    Popular News

    Recent News

    Featured Cars

    • Popular
    • JUST LAUNCHED
    • Upcoming
    Skoda Kylaq
    Skoda Kylaq
    Rs. 9.21 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    JUST LAUNCHED
    6th NOV
    Maruti Suzuki Dzire
    Maruti Dzire
    Rs. 8.01 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    JUST LAUNCHED
    11th NOV
    Tata Curvv
    Tata Curvv
    Rs. 11.71 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Mahindra Thar Roxx
    Mahindra Thar Roxx
    Rs. 15.61 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Tata Nexon
    Tata Nexon
    Rs. 9.39 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Maruti Suzuki Fronx
    Maruti Fronx
    Rs. 8.84 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Mahindra XUV 3XO
    Mahindra XUV 3XO
    Rs. 9.15 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Hyundai Creta
    Hyundai Creta
    Rs. 13.09 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Mercedes-Benz AMG C 63 S E-Performance
    Mercedes-Benz AMG C 63 S E-Performance
    Rs. 2.31 Croreonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    JUST LAUNCHED
    12th NOV
    Maruti Suzuki Dzire
    Maruti Dzire
    Rs. 8.01 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    JUST LAUNCHED
    11th NOV
    Skoda Kylaq
    Skoda Kylaq
    Rs. 9.21 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    JUST LAUNCHED
    6th NOV
    Mercedes-Benz AMG G-Class
    Mercedes-Benz AMG G-Class
    Rs. 4.26 Croreonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Mercedes-Benz E-Class
    Mercedes-Benz E-Class
    Rs. 93.23 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Volvo EX40
    Volvo EX40
    Rs. 59.31 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    BYD eMax 7
    BYD eMax 7
    Rs. 28.40 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Nissan Magnite
    Nissan Magnite
    Rs. 7.04 Lakhonwards
    On-Road Price, Jaysingpur
    Check On-Road Price
    Mahindra BE 6e
    Mahindra BE 6e

    Rs. 17.00 - 21.00 LakhEstimated Price

    26th Nov 2024Unveil Date

    Get Launch Alert on WhatsApp

    Mahindra XEV 9e
    Mahindra XEV 9e

    Rs. 50.00 - 52.00 LakhEstimated Price

    26th Nov 2024Expected Launch

    Get Launch Alert on WhatsApp

    Honda Amaze 2024
    Honda Amaze 2024

    Rs. 7.50 - 10.00 LakhEstimated Price

    4th Dec 2024Expected Launch

    Get Launch Alert on WhatsApp

    Audi Q6 e-tron
    Audi Q6 e-tron

    Rs. 1.00 - 1.10 CroreEstimated Price

    Dec 2024 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Mercedes-Benz G-Class with EQ Power
    Mercedes-Benz G-Class with EQ Power

    Rs. 3.04 - 5.00 CroreEstimated Price

    Dec 2024 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Mahindra XUV.e8
    Mahindra XUV.e8

    Rs. 21.00 - 30.00 LakhEstimated Price

    Dec 2024 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    BMW New X3
    BMW New X3

    Rs. 65.00 - 70.00 LakhEstimated Price

    Jan 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Hyundai Creta EV
    Hyundai Creta EV

    Rs. 22.00 - 26.00 LakhEstimated Price

    Jan 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Popular Videos

    Mail Image
    Sign up for our Newsletter
    Get all the latest updates from the automobile universe
    • Home
    • News
    • Lack of shipping insurance to make Iran oil import difficult