New Delhi : Iran has asked Indian refiners like Essar Oil and MRPL to pay interest rate of Libor-plus 0.75% on the $6.5 billion they owe it in past oil dues, to make up for the foreign exchange losses.
The demand was made when Oil Minister Dharmendra Pradhan met Iranian Central Bank Governor Valiollah Seif in Tehran earlier this month. “They are seeking interest rate on past oil dues. They mentioned a rate of Libor (London Inter-Bank Offered Rate)- plus 0.75 per cent in the meeting,” a senior official said.
Iran is insisting on interest being paid after differences cropped up over foreign exchange rate.
Iran sold oil to refiners like Essar Oil and Mangalore Refinery and Petrochemicals Ltd (MRPL) in US dollar per barrel. 45%of the oil bill was paid in rupees in a UCO Bank account while the rest 55% was to be cleared whenever banking channels open. Now with lifting of sanctions, Iran has presented its unpaid bill. But Essar Oil and other refiners want to pay Iran at the exchange rate prevalent at the time of buying crude oil in the last three years.
