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India to slash Iran oil imports in 2013/2014, seeks price cut

Published on Dec 19, 2012 6:41 PM

NEW DELHI (REUTERS) - India plans a cut of 10 per cent to 15 per cent in imports of Iranian oil in the next fiscal year and will buy even less if Teheran does not lower prices to compensate for bigger borrowing costs as sanctions make banks reluctant to finance oil trade, sources said on Wednesday.

Iran's top Asian oil buyers - China, India, Japan and South Korea - have all cut imports after the United States and the European Union targeted oil sales with sanctions aimed at curbing Teheran's nuclear ambitions.

The sanctions have more than halved Iran's oil exports this year, costing Teheran up to US$5 billion (S$6.1 billion) a month in lost revenue.

"Next year our import will be 10 per cent to 15 per cent less than this year," said a government official with direct knowledge of the matter, who declined to be identified as he is not authorised to speak to the media.

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