US commerce secretary has said that the US government cannot ensure sale of its oil to India at cheaper rates as the commodity is controlled by private companies.
Recently,India had stopped importing crude oil from Iran following the US move to end sanction waivers.Iranian oil was a profitable buy for India as supplies from Iran used to land up in India in a week which used to reduce the logistics cost and the import bill.
Further,Iran also used to make arrangements to ship the oil to India including providing insurance cover during transit.In the case of most other suppliers including the US,refiners have to make shipping arrangements and pay for insurance.
India is the world’s third-largest consumer of oil with 85% of its crude oil and 34% of its natural gas requirements being fulfilled by imports.India was also the second biggest buyer of Iranian crude oil after China.
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