New Delhi: Despite severe unrest in the Arab world and intense pressure from US, India has decided to continue importing oil from Iran in the coming days.

The day-by-day soaring price of crude oil in the international market and high domestic demand has emerged as a crucial reason behind India’s decision to remain distant from the decision of the global community over Iran.

Sources claim that India is rapidly searching better and economical alternatives for oil exports, but till that time it will rely on Iran to satisfy its oil needs. India is eyeing at Malaysia, Indonesia, Nigeria and other bulk exporters of crude oil as an alternative for meeting its oil demands.

“At least for the next three months, India will continue with importing crude oils from the region. Moreover, oil companies have been directed to buy utmost crude oils from Iran,” sources said.

Iran is the first choice for India in terms of oil exports due to several reasons. Being the second -highest importer of Iranian oil, India is served with subsidies by the gulf country.

India buys crude oil from Iran at approx USD 5 per barrel less than other countries.

Moreover, introduction of new payment mechanism by Iran leading to enabling Indian exporters to receive payments in the rupee currency has also played a major role in making India continue being the top most oil customer of Iran.

Experts suggest that Iran depending on the oil demands of India has started banning oil exports to EU countries. After this development, the prices of crude oil have jumped ninth months high in the international oil market.

As India is dependent on other countries to cater 82 percent of its oil need, hence the increase in the prices of crude oil due to Iran’s banning export to EU can claim an adverse effect on its economy.

Last year, due to the sky rocketing prices of crude oil in global market, the government oil companies had to suffer a loss of around Rs 92, 000 crore. To accommodate the losses, the government had to make a grant of Rs 30,000 crore to the oil companies.  The experts claim that in the prevailing situation the government is likely to release Rs 70,000 crore to oil companies as subsidies this fiscal.