Iran to be paid crude oil payment in Indian rupee from November, big question; Will petrol and diesel be cheaper?
Friday - September 21, 2018 3:51 pm ,
Category : WTN SPECIAL
Iran ready to accept payment of crude oil in Indian rupees
India to pay crude oil payment in Indian rupees to Iran, UCO Bank and IDBI Bank to be channel
SEP 21 (WTN) - The prices of petrol and diesel are increasing every day due to weak rupee against US dollar and crude oil being cheaper in the international market day by day. According to experts, the rupee will be weakened in the coming days and crude oil will also be expensive, in India, petrol prices can go up to Rs 100 per liter.
But if everything stays according to the plan, then after November, there is hope of lowering the price of petrol and diesel in India. This is because India will pay oil imported from Iran into Indian rupees. For your information let you know that the US sanctions on Iran are being implemented from November 4. After which it would be difficult to pay in the US dollar using the banking channel with Iran.
For your information let you know that Indian oil companies are currently paying to Iran through the State Bank of India and one of German banks in Iran. Seeing the US ban on Iran, SBI has told oil companies that payments to the Iran will be stopped since November.
According to information from the media, Iran is ready to accept payments in Indian rupees for crude oil. Iran can use this amount to pay for the equipment and food items purchased from India. Among all this, UCO Bank and IDBI Bank have been selected for payment to Iran. This is because the presence of both of these banks in the US financial system is non-existent. India currently pays Iran in euro via the European banking channel. Due to American sanctions, these channels will stop working in November.
In order to take crude oil from its third largest oil supplier country Iran, oil refineries of India have booked oil for September in addition to October. As Iran gives 60 days to pay, then the oil purchased in September will be paid in November. Therefore, India could pay in Indian Rupees after the ban to be imposed from November.
For your information, let you know that US president Donald Trump had announced in May of this year that the US is withdrawing itself from the nuclear deal with Iran signed in 2015 and imposing new economic sanctions. Some restrictions in US on Iran have come into effect from 6th August, while the restrictions on Tehran's oil and banking sector will be effective from November 4.
But the big question is whether the price of petrol and diesel will be lower in India after paying crude oil to Iran in Indian rupees? India, during the current financial year, had planned to import 25 million tonnes of crude oil from Iran, which is more than the previous year's 22.6 million tonnes. But experts believe that real import is far less than that. Companies like Reliance Industries have completely stopped importing crude oil from Iran, while some other companies are also making significant reduction in imports.
Now that Iran will be paid in Indian rupees, so it is expected that the oil imported from Iran might be cheaper. If this happens then the Indian public can get a lot of relief. But it has to be seen that due to US sanctions, the import of crude oil from Iran can continue smoothly or not. If the import continues and the payment continues in Indian rupee then it may be that the prices of petrol and diesel to be reduced in the country.
SEP 21 (WTN) - The prices of petrol and diesel are increasing every day due to weak rupee against US dollar and crude oil being cheaper in the international market day by day. According to experts, the rupee will be weakened in the coming days and crude oil will also be expensive, in India, petrol prices can go up to Rs 100 per liter.
But if everything stays according to the plan, then after November, there is hope of lowering the price of petrol and diesel in India. This is because India will pay oil imported from Iran into Indian rupees. For your information let you know that the US sanctions on Iran are being implemented from November 4. After which it would be difficult to pay in the US dollar using the banking channel with Iran.
For your information let you know that Indian oil companies are currently paying to Iran through the State Bank of India and one of German banks in Iran. Seeing the US ban on Iran, SBI has told oil companies that payments to the Iran will be stopped since November.
According to information from the media, Iran is ready to accept payments in Indian rupees for crude oil. Iran can use this amount to pay for the equipment and food items purchased from India. Among all this, UCO Bank and IDBI Bank have been selected for payment to Iran. This is because the presence of both of these banks in the US financial system is non-existent. India currently pays Iran in euro via the European banking channel. Due to American sanctions, these channels will stop working in November.
In order to take crude oil from its third largest oil supplier country Iran, oil refineries of India have booked oil for September in addition to October. As Iran gives 60 days to pay, then the oil purchased in September will be paid in November. Therefore, India could pay in Indian Rupees after the ban to be imposed from November.
For your information, let you know that US president Donald Trump had announced in May of this year that the US is withdrawing itself from the nuclear deal with Iran signed in 2015 and imposing new economic sanctions. Some restrictions in US on Iran have come into effect from 6th August, while the restrictions on Tehran's oil and banking sector will be effective from November 4.
But the big question is whether the price of petrol and diesel will be lower in India after paying crude oil to Iran in Indian rupees? India, during the current financial year, had planned to import 25 million tonnes of crude oil from Iran, which is more than the previous year's 22.6 million tonnes. But experts believe that real import is far less than that. Companies like Reliance Industries have completely stopped importing crude oil from Iran, while some other companies are also making significant reduction in imports.
Now that Iran will be paid in Indian rupees, so it is expected that the oil imported from Iran might be cheaper. If this happens then the Indian public can get a lot of relief. But it has to be seen that due to US sanctions, the import of crude oil from Iran can continue smoothly or not. If the import continues and the payment continues in Indian rupee then it may be that the prices of petrol and diesel to be reduced in the country.
