Fearing a run on the rupee in the event of having to pay nearly $6 billion in past dues to Iran, the Government has asked oil refiners to gradually buy dollars/euros and be readyto clear all dues by the year end.
Since February 2013, Indian refiners like Essar Oil and Mangalore Refinery and Petrochemicals have been paying in rupees to UCO Bank 45 per cent of their payment due on purchase of crude oil from Iran.
The remaining has been accumulating, pending finalisation of a payment mechanism. They had last year paid nearly $3 billion in six installments through a limited payment channel following start of nuclear talks between the West and Iran.
