India Emerges as Global Swing Supplier of Refined Fuel
India has emerged as a swing supplier in the world's refined fuel markets, driven by supply disruptions in the Middle East and Russia. The country is capitalizing on its refining capacity and strong product cracks to export oil products at a record high.
The recent refinery expansions and consistently high operating rates have enabled India to become a major player in the global market. In 2023-24, India was the largest supplier of refined fuels to the European Union, overtaking Saudi Arabia.
India's refining capacity is expected to increase from 258.1 million tonnes to about 309.5 million tonnes. This expansion will further strengthen the country's position as a major petroleum-product exporter.
However, experts warn that India's reliance on discounted Russian crude may not be sustainable in the long term. The European Union's ban on refined products derived from Russian crude and potential US tariffs could significantly impact India's exports.