Reuters reported that India's HPCL may buy 2.8 million tonnes of crude from Iran in 2012 to 2013, a little less than the 3 million tonnes of a year earlier.

Iran crude buyers in Asia, its biggest market, are under pressure from Washington to reduce oil imports as the United States and its allies seek to force Tehran to halt its nuclear program. New US sanctions make it tough for Asian importers to pay for Iran's oil.

Mr S Roy Choudry chairman of HPCL said that if HPCL imports less crude, it would be because of refinery economics and not because of any payment problems.

Iran is India's second largest oil supplier after Saudi Arabia. Iran's biggest Indian customer, Mangalore Refinery and Petrochemicals said it might buy less oil from Iran this fiscal year citing refinery shutdowns. India relies on Iran for about 12% of its oil needs or around 350,000 barrels per day to 400,000 barrels per day. New Delhi is one of Tehran's biggest customers.

Mr Asim Hussain oil minister of Pakistan said that neighboring Pakistan which imported in total 346,400 barrels per day in 2009 is not buying oil from Iran.

Indian refiners have struggled to find ways to pay Iran in the past 13 months after a clearing mechanism was scrapped in December 2010 and refiners have sought alternative supplies but so far none have announced any cuts in Iran imports as a result.

Payments are currently being routed through Turkey's Halkbank but this too is looking vulnerable after fresh sanctions from both sides of the Atlantic.

(Sourced from Reuters)