New Delhi: The Finance Ministry is closely watching the economic costs of oil imports from other alternative markets like Iraq and Saudi Arabia, following the United States' withdrawal earlier this month of the waiver granted last year to some countries by the US on its Iran sanctions.
Following the withdrawal of the US waiver, India has stopped contracting oil shipments from Iran this weekend, an official source said here on Wednesday.
Petroleum Minister Dharmenra Pradhan last month had said that government has put in place a robust plan for the adequate supply of crude oil to Indian refineries.
There will be additional supplies from other major oil producing countries and Ind ian refineries are fully prepared to meet the national demand for petrol, diesel and other petroleum products, he said.
With 80 per cent of India's requirements being met through imports, higher-priced oil from non-Iranian sources can make a big dent in the country's current account deficit and forex reserves.
Oil imports from Iran in the past fiscal ended March amounted to about USD 9 billion, as per industry figures.
Official sources here said that getting oil from alternative sources would have financial implications and lead to further pressure when crude touches USD 75-80 per barrel in the near-term, putting pressure on India's import bill.