1.6 million tonnes of oil, 2 lakh tonnes of LNG stranded at Strait of Hormuz; India in talks with Iran for safe passage

For India, the passage for ships is crucial as the country depends substantially on LPG supplies from the Gulf region with 90% of LPG imports passing the Strait of Hormuz. 

• India seeks safe passage for 22 stranded vessels in Persian Gulf
• Talks ongoing with Iran for ship transit via Strait of Hormuz
• Indian Navy supports anti-piracy operations in the region

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India continues to have discussions with Iran and other counterparts for ensuring safe passage of the 22 stranded vessels at the Persian Gulf.

At present one LNG tanker carrying 2 lakh tonnes of cargo, six vessels carrying 3.2 lakh tonnes of LPG, and four vessels carrying 1.6 million tonnes of crude oil remain stuck at the west of the Strait of Hormuz, Rajesh Kumar Sinha, special secretary at the Ministry of Ports, Shipping, and Waterways said on March 18.

“We have our discussions which are going on with Iran and other countries for the transit of ships via the Strait of Hormuz,” Randhir Jaiswal, additional secretary at the Ministry of External Affairs said.

Sinha also noted that three other vessels are presen at the east strait of Hormuz and movement is happening.

Moneycontrol had earlier reported that India will seek vessel by vessel permission rather than a blanket clearance from Iran for safe passage of its ships from the Strait of Hormuz.

Jaiswal also noted that the Indian Navy is present in the area for anti-piracy operations and they have been supporting several of the country’s initiatives. “What type of support they are providing, the Ministry of Defence would be in a better position to answer,” he added.

For India, the passage for ships is crucial as the country depends substantially on LPG supplies from the Gulf region with 90% of LPG imports passing the Strait of Hormuz.

Government sources have also told Moneycontrol that India continues to export pharmaceuticals to Iran amid reports of India agreeing to provide medical equipment to Iran to ensure safe passage of vessels from the Strait of Hormuz.

Sinha has earlier said that the ministry has held discussions internally for providing war risk premium to shipping lines which is presently an issue. Further, India is also mulling to establish Protection and Indemnity (P&I) insurance for the country's maritime sector, the shipping ministry official had said.

Addressing the issue of supply of fuels to neighbouring countries, Jaiswal noted that India has received these requests and is examining those requests keeping in mind the country’s own requirements and availability.

Meanwhile, Sujata Sharma, joint secretary at the petroleum ministry said that Indian crude oil basket has increased yet there has been no increase in the prices of petrol and diesel.

The Indian crude oil basket price at which the country imports crude oil stood at $146.09 per barrel as on March 17, as per data from Petroleum Planning and Analysis Cell.