India Defies Global Diesel Shortage, Vows to Honour Supply Commitments
India's Minister for Petroleum and Natural Gas, Hardeep Singh Puri, said his country will continue to honour its commitments to supply diesel even if the US imposes export bans due to the ongoing global crisis. The US-Iran war and Russia-Ukraine conflict have led to a diesel shortage worldwide, causing prices to skyrocket in many countries.
Puri stated that years of investment in refining capacity had left India well placed to sustain overseas supply, with its current refining capacity standing at 267 MTPA. The country is poised to reach nearly 290 MTPA within the next year and aims to increase it further to 320 MTPA by 2030-32.
In comparison, diesel prices in the US have reached as high as $6 per gallon, while in India, there has been no shortage of fuel at retail outlets. The minister also mentioned that a US ban on diesel exports could push British inflation to nearly 5 per cent and strengthen the case for Bank of England interest-rate hikes.