The government on Tuesday said it is "adequately prepared" to deal with the impact of the US decision to end waiver for importing oil from Iran and that it will continue to work with Washington and other partner countries to find "all possible ways" to protect its energy and economic security interests.

"Government has noted the announcement by the US government to discontinue the Significant Reduction Exemption to all purchasers of crude oil from Iran," External Affairs Ministry spokesperson Raveesh Kumar said in a statement here, a day after the US announced the decision.

Meanwhile, a statement by the Ministry of Petroleum and Natural Gas said, "The Government of India has put in place a robust plan to ensure that there is adequate supply of crude oil to Indian oil refineries from May 2019 onwards.”

"There will be additional supplies from other major oil producing countries from different parts of the world. The Indian refineries are fully prepared without any problem to meet the national demand for petrol, diesel and other petroleum products in the country, “the statement added.

The US on Monday announced that sanction waivers for India, China, Japan, South Korea and Turkey would not be renewed when they expire on May 2. The decision is intended to deny Iran its principal source of revenue.

In November, the US reimposed sanctions on exports of Iranian oil after President Donald Trump withdrew from a 2015 nuclear accord between Iran and six world powers.

India imports close to 10 per cent of its domestic oil requirement from Iran. Though the imports fell slightly in 2018-2019 following the US sanctions, it is still significant at close to 20 million tonnes per annum.

Iran is also a commercially attractive oil exporting country as it offers better terms for oil to India including a 60-day credit period and discounts on oil and insurance.