India Emerges As Key Diesel Supplier To Europe Amid Russia Export Slump, US Shipments Decline

New Delhi, Sep 6: India has become a significant supplier of diesel to Europe, supplying around 60% of the fuel passing through the Bab-el-Mandeb to the region in August, as Russian exports remain severely limited and US shipments are declining, according to data from Vortexa, a provider of real-time data and advanced analytics for the energy and freight sectors.

India's diesel shipments India shipped approximately 2,00,000 barrels per day of diesel (gasoil) through the Bab-el-Mandeb in August, nearing pre-March and April levels after flows through the critical shipping route nearly halted. India is a major player India is the world's fourth-largest refiner, with an installed capacity of 258.1 million tonnes per annum, surpassing domestic fuel demand.

The need for exports India exported 61.5 million tonnes of petroleum products in the 2025-26 fiscal year (April 2025 to March 2026), positioning it among the largest exporters of refined products globally. Europe's growing dependence India's diesel supplies are now filling a gap left by Russia, with Europe increasingly relying on Indian refineries.

US shipments decline The US, another significant source of incremental supply for Europe, is also showing signs of retreat, with US shipments to Europe declining by about 35% in August compared to the previous year. Hormuz offers limited relief The Strait of Hormuz is providing limited relief to the market, but most activity involves crude rather than refined products.

Winter demand concerns Europe is entering its peak winter diesel-demand period, with low inventories and refineries in both the US and Europe facing maintenance after operating at high rates.