Business & Finance

India’s Diesel Exports Rise to 13‑Month Peak as Global Supply Shocks Persist

By Bhanu Pratap

India exported an average of 0.71 million barrels per day of diesel between 1 and 29 October, a 19.6 % rise from September and an 8.1 % increase over the same period last year, according to preliminary vessel‑tracking data from Kpler cited by The Indian Express. The surge comes amid disruptions to energy supplies from West Asia and a sharp cut in Russian diesel exports caused by the Russia‑Ukraine war. With international refining margins attractive, Indian refiners have stepped up overseas sales, making India the world’s second‑largest diesel exporter.

Reliance Industries Ltd (RIL) dominated the export market, shipping about 0.55 million barrels per day in October, roughly 78 % of India’s total diesel exports. RIL’s shipments were 12 % higher than September and 32.5 % above the year‑ago level. The company operates the Jamnagar refining complex in Gujarat, the world’s largest single‑location refining hub.

Public‑sector refiners also increased exports. Mangalore Refinery and Petrochemicals Ltd (MRPL) raised its diesel exports to about 38,000 barrels per day from around 1,000 in September. Indian Oil Corporation Ltd (IOC) saw a 464 % month‑on‑month jump to approximately 53,000 barrels per day, while Hindustan Petroleum Corporation Ltd (HPCL) increased shipments by 16.3 % to about 26,000 barrels per day. Nayara Energy’s exports fell 42.4 % month‑on‑month to roughly 40,000 barrels per day.

The rise in shipments reflects the impact of supply disruptions in major energy‑producing regions and the higher returns available in international markets. The West Asian conflict, ongoing for eight months, has disrupted global flows of crude oil, petroleum products and natural gas. Ukrainian drone attacks on Russian energy infrastructure have damaged refineries and limited Russia’s ability to export diesel, creating a gap that Indian refiners have filled.

Industry analysts expect diesel exports to remain elevated if international supply shortages persist, though India’s growing domestic fuel demand could constrain further increases. Diesel remains a critical fuel for India’s transport, agriculture, construction and industrial sectors.

The article was written by journalist Bhanu Pratap, who reports on foreign affairs, geopolitics and strategic issues. He has worked with Firstpost, NDTV, Newslaundry and Republic, and studied at the Delhi School of Journalism, University of Delhi.