MUMBAI - Indian Oil Corp's plans to expand its Chennai refinery are not likely to bethreatened by the impending U.S. sanctions against Iran, Chairman Sanjiv Singh said on Monday.

IOC wants to continue buying oil from Iran due to better terms and is also interested in getting into a long-term deal to buy U.S. oil, Singh said.

He said the current sharp fall in the rupee poses challenges and could push up retail fuel prices.

The rupee hit a record low of 69.86 per dollar earlier in the session.

(Reporting by Nidhi Verma in NEW DELHI; Editing by Christian Schmollinger)

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