'Ghost Oil Tankers': What Is India's 'Shadow' Fleet That Has Got Security Agencies Worried?

Last Updated:March 12, 2026, 21:50 IST

Sources said these oil tankers – transporting sanctioned crude from Russia, Iran, and Venezuela – engage in "going dark" by disabling their AIS transponders to hide their movements

Security agencies in India have raised serious concerns over what they called a growing “shadow" fleet of risky, aging oil tankers operating in close to the country’s coastline.

These “ghost oil tankers" are increasingly seen as a triple threat, raising fears of catastrophic environmental spills, maritime collisions, and sudden domestic price shocks.

As India navigates its energy security requirements amid the ongoing West Asia conflict, the presence of these ships – transporting sanctioned crude from Russia, Iran, and Venezuela – presents a precarious challenge to the region’s stability. Their operators reportedly employ deceptive tactics to bypass western sanctions, price caps, and international regulations.

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HOW DO THESE SHIPS FUNCTION?

According to top government sources, these oil tankers frequently engage in “going dark" by disabling their automatic identification system (AIS) transponders to hide their movements.

Government sources told News18 said the ships often operate under opaque shell-company ownership – many of which have been linked to India-based firms – and fly “flags of convenience" from registries known for lax oversight. Ship-to-ship transfers of crude oil in unregulated waters, including reported incidents off the coast of Mumbai, further complicate the maritime security landscape.

The sources said the physical state of these tankers is a primary cause for alarm among Indian authorities. Many are between 15 and 30 years old, having been recommissioned from a “near-scrap" status.

WHY DO THE SHIPS POSE A DANGER?

The sources said these substandard vessels are highly prone to mechanical failures, fires, breakdowns, and collisions.

Experts have warned that a major incident in the Arabian Sea, Indian Ocean, or near vital ports such as Mumbai, Chennai, Paradip, or Vadinar could have a devastating impact on the environment. They said such a disaster would likely ravage local fisheries, sensitive mangroves, and beaches, causing irreparable harm to marine life.

The sources said the financial risk associated with these unregulated operations adds another layer of anxiety. Because many of these ships use false flags or operate under sanctions, their insurance is often limited or entirely void.

They said in the event of a disaster, the massive cleanup costs and compensation requirements will heavily fall on India depleting national resources. Their unpredictable nature increases congestion in critical maritime routes, such as the approaches to the Strait of Hormuz raising the risk of collisions with legitimate traffic, including Indian-flagged ships, naval vessels, and local fishing boats.

WHAT ARE THE GEOPOLITICAL RISKS?

The sources said the geopolitical ramifications are equally significant, as India’s heavy reliance on shadow fleet oil has drawn sharp criticism from the United States and other western allies.

They said this friction has led to threats of secondary sanctions, creating uncertainty for India’s long-term economic stability. While the fleet currently provides access to cheaper crude, any major accident or a surge in international seizures – similar to India’s own actions against Iranian-linked tankers – could disrupt the flow of oil.

Such disruptions, the sources said, will likely cause domestic fuel prices to spike or force India to make a costly switch to more expensive sources like the US, Iraq, or Saudi Arabia.

WHO MANAGES THE SHIPS?

The sources said beyond ecological and economic risks, the involvement of local firms manages to tarnish India’s global standing.

They said some of the firms managing these “ghost" ships are based in locations like Goa, a fact that “jeopardises India’s international reputation as a responsible maritime power".

These vessels are also known for exploitative conditions for seafarers and inadequate safety standards, which may eventually require hazardous rescue operations by the Indian Navy or Coast Guard, the sources said. Current shifts in the industry, such as recent pauses by major refiners like Indian Oil Corporation (IOC) and Bharat Petroleum, reflect an ongoing effort to balance urgent energy needs with the rising dangers of dark-fleet operations. But, as this fleet grows, the need for a more robust regulatory response becomes increasingly urgent to protect India’s waters and its international prestige, they added.

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