As the United States is preparing to impose oil sanctions against Iran, indications are growing in New Delhi that the second biggest client of Iranian oil will not fully cut its purchases from Tehran.

The CNBC in a report quoted unnamed “senior Indian officials” as saying that imports of oil from Iran would continue even after the US starts to impose sanctions against purchases of the vital fuel from the country in early November.

The Indian official were also quoted as saying that halting imports from Iran – as requested by Washington - would be impossible, the CNBC added citing a report by local Indian newspaper The Economic Times.

The report further highlighted the costs for India to find an alternative for Iran’s oil.

“At a time of rising oil prices globally and a weakening national currency amid an emerging markets sell-off, this is going to hurt,” the CNBC wrote.

The report further warned that giving up imports from Iran as a supplier of cheap fuel could have significant impacts on India’s inflation and economic growth.

Earlier, reports said Iran was offering free shipping as well as extended credit terms to encourage India to continue purchasing its oil.

Furthermore, many Indian refineries are configured to process Iranian oil. In other words, they cannot switch to other suppliers easily, the CNBC added.

Delhi will therefore be forced to turn to other producers to meet their energy needs. Washington has offered to replace the loss of supply with US oil, but those shipments will be more expensive than those from nearby Iran, the report added.