India hopes for quick solution to Iran payments issue

Government expects to reach a solution to a dispute with Iran over the mechanism for settling oil import sales in the next few days, Oil Secretary S. Sundareshan said today.

Government expects to reach a solution to a dispute with Iran over the mechanism for settling oil import sales in the next few days, Oil Secretary S. Sundareshan said on Thursday.

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He also said that upstream firms would not have to shoulder more than 33% of the burden of subsidies for revenue losses of oil retailers who have to sell fuel below market prices.

RBI has said deals with Iran must be settled outside the Asian Clearing Union system and Iran has refused to sell oil under these new rules.

Sundareshan added that his ministry was discussing the issue with the finance ministry.