India Emerges as Major Diesel Supplier to Europe Amid Russian Export Crunch
India's diesel exports to Europe have surged in recent months as Russian fuel shipments remain severely restricted. In August, Indian refiners supplied around 60% of the diesel volumes moving through the Bab-el-Mandeb route towards Europe, according to energy intelligence firm Vortexa.
This shift marks a significant change in the global fuel trade landscape. European countries once heavily relied on Russian refined fuel, but sanctions and disruptions have limited supply. Indian refiners are well-positioned to meet this demand due to their large refining capacity and excess production for domestic markets.
India's installed refining capacity stands at around 258.1 million tonnes per year, exceeding its domestic fuel needs. This allows Indian refineries to process crude oil into diesel and other fuels for export. In August, approximately 2,00,000 barrels per day of diesel passed through the Bab-el-Mandeb on ships heading towards Europe, with Indian refiners accounting for about 60% of that volume.
However, India's growing diesel exports come at a time when crude oil supplies are tightening. Crude and condensate shipments into India fell for the second straight month in August, raising concerns over refineries' ability to meet export demand.