India was expecting relief from the United States of America after the ban from purchasing of oil from Iran. But now America's statement on this issue is not less than a shock to India. The US Monday said it cannot ensure the sale of its crude oil to India at concessional rates to make up for the cheaper Iranian oil going out of the market.
US Commerce Minister Wilbur Ross said in New Delhi, "Oil is owned by private people, so the government cannot force people to make a concessionary price."
In fact, after the exemption from the US sanctions imposed on Iran, India has stopped importing crude oil from Iran this month. Importing crude oil from Iran is beneficial for the Indian refineries. Iran gives 60 days to buyers to pay but other countries like Saudi Arabia, Kuwait, Iraq, Nigeria, and the US do not allow it.
Ross said after meeting Finance Minister Arun Jaitley, "Iran is a problem, if you have seen recent terrorism incidents, and we should be doing whatever we can against terrorism," US Ambassador to India Kenneth Jester said, "America is working with other countries including Saudi Arabia to ensure adequate supplies of crude oil."
It is worth noting that India has been the second largest buyer of Iranian crude oil after China. In the last financial year, India bought 240 million tonnes of crude oil from Iran, it is 10 percent of India's total requirement.