India’s importance in the European fuel market is growing. While Russian diesel and gas oil exports to Europe have been weak for a long time, fuel supplies from the US to Europe have also seen a decline in recent days. At a time when Indian refineries are playing a major role in meeting Europe’s fuel needs, they are playing a major role.
According to data from energy analytics firm Vortexa, about 200,000 barrels of diesel and gas oil were transported daily through the Bab-el-Mandeb sea route in August by ships bound for Europe. The big thing is that fuel trade through this sea route had almost come to a standstill in March and April. But in August, this business has once again returned to the levels of about a year ago. The biggest thing is that about 60 percent of this supply comes from Indian refineries. This means that India’s role in meeting Europe’s diesel demand is now increasing.
India’s Refining Capacity
India is the world’s fourth largest refining hub. The country’s total installed refining capacity is about 258.1 million tonnes, or 258.2 million tonnes per annum. This is significantly more than its domestic fuel consumption. In the financial year 2025-26, India exported about 61.5 million tonnes of petroleum products. This reflects India’s important role in the global refined fuel market.
Why are supplies from Russia and the US weak?
- Russian diesel and gas oil exports have remained very weak.
- In the first 25 days of August, Russian seaborne supplies averaged 1.5 lakh barrels per day, which is much lower than last year.
- The drone attack in Ukraine has affected many of Russia’s refining and fuel export infrastructure.
-This includes the 2.6 lakh barrels per day (bpd) Perm refinery. Similarly, diesel exports have also been suspended after the Mayur attacks.
Large refineries have sophisticated processing capabilities. As a result, India is able to import crude oil from various sources and convert it into diesel and other petroleum products. A portion of this refined fuel is also exported to foreign markets, meeting domestic demand. Europe is emerging as an important market for Indian refineries due to the shift in supply from Russia and the US to Europe.
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