India emerges as key diesel supplier to Europe: Report

New Delhi: India is emerging as a crucial supplier of diesel to Europe as Russian exports remain severely constrained and US shipments begin to weaken, with Indian refiners accounting for around 60 per cent of diesel volumes transiting the Bab-el-Mandeb to Europe in August, according to energy intelligence firm Vortexa.

Around 2,00,000 barrels per day (bpd) of diesel, or gasoil, transited the Bab-el-Mandeb in August on vessels bound for Europe. The volume was close to year-ago levels after flows through the strategically important shipping route had nearly stalled in March and April. India supplied roughly 60 per cent of the August volumes, highlighting the growing importance of Indian refineries to Europe’s eastern diesel supply.

India’s position is underpinned by its large refining capacity. The country is the world’s fourth-largest refiner, with installed capacity of 258.1 million tonnes per annum, significantly higher than domestic fuel demand. This surplus has enabled Indian refiners to remain major exporters of petroleum products.

India exported 61.5 million tonnes of petroleum products during 2025-26, making it one of the world’s largest exporters of refined fuels. Increasingly, these products are finding markets across Europe and, in some cases, Russia, as sanctions, refinery disruptions and changes in global trade routes reshape refined-product flows.

However, the sustainability of India’s growing role in Europe’s diesel market is coming under scrutiny as crude supplies into the country tighten. Crude and condensate shipments into India fell for a second consecutive month in August to around 3.8 million bpd, compared with 4.8 million bpd a year earlier, Vortexa data showed.

The pressure on European diesel supplies is particularly pronounced because Russian exports, once a major source of the region’s supply, have remained largely absent. Russia’s seaborne diesel and gasoil exports averaged only around 1,50,000 bpd during the first 25 days of August, down by about 6,10,000 bpd from a year earlier and 81 per cent below the five-year seasonal average, according to Vortexa.

Even the lifting or partial relaxation of Russia’s diesel export restrictions from September 1 may not result in an immediate recovery in supplies. Continued Ukrainian drone attacks have disrupted Russian refineries and export infrastructure, with 32 attacks on refineries recorded during July and August.

IANS