Despite the threat of heavy tariffs from the United States, India has emphasized the continuation of its oil product exports. Hardeep Singh Puri, India's Minister of Petroleum, stated at an industry event that the country will continue its export commitments and will keep investing in its refining capacities.
The importance of India as a diesel supplier
Puri further stated that despite the geopolitical tensions disrupting fuel markets, global oil supplies have remained available, especially under current conditions. He pointed to India's extensive supply network and domestic refining capacities as barriers against supply disruptions.
India has increased the number of countries from which it sources crude oil from ٢٧ to ٤١ and has raised its domestic LPG production from about ٣٤,٠٠٠ tons per day to ٥٥,٠٠٠ tons per day. According to Puri, the country has also achieved an annual refining capacity of ٢٦٧ million tons.
Global pressures on the diesel market
Recent developments come as the global diesel market faces increasing pressure from conflicts in West Asia and Ukraine. Diesel prices in Europe and the United States have surged sharply, and supply disruptions have constrained the market.
The United States is also considering limiting diesel exports for up to ٩٠ days. Donald Trump, the President of the United States, has stated that his administration is seriously considering this action, as the country produces a large volume of diesel and could benefit from retaining more of this fuel domestically.
India is increasingly filling the gap left by Russian diesel exports. Russian marine diesel and gasoil exports have significantly declined following Moscow's restrictions on foreign exports to protect domestic supply.
According to Vortexa data, Russian marine diesel and gasoil exports in August reached about ١٥٠,٠٠٠ barrels per day, down ٦١٠,٠٠٠ barrels per day from last year and ٨١% lower than the five-year seasonal average.
India is now recognized as one of the main diesel suppliers after the United States, accounting for about ١٠% of global diesel trade.
