India Becomes Europe’s Top Diesel Supplier, Accounts For 60% Of August Shipments

Mumbai: India has become Europe's top diesel supplier, accounting for a significant 60% of shipments through the Bab el-Mandeb Strait in August 2026. This surge in Indian diesel exports can be attributed to a slowdown in Russian exports and weakened shipments from the United States due to disruptions in global energy trade. According to Vortexa data, Indian refiners delivered nearly 60% of the diesel and gasoil transported through the crucial shipping route in August, with around 2,00,000 barrels per day moving through the Bab el-Mandeb Strait.

This volume is close to the levels seen last year, having rebounded after a sharp decline in March and April. Although Middle East tensions affected global oil and gas supplies, India managed to mitigate the impact by diversifying its import sources and boosting domestic production. As the world's fourth-largest refiner with an annual capacity of 258.1 million tonnes, India has surplus refining capacity and can export substantial volumes.

In 2025-26, India exported 61.5 million tonnes of petroleum products, making it one of the largest exporters of refined petroleum products globally. These fuels are finding buyers in international markets, including Europe. The US diesel shipments to Europe through Bab el-Mandeb fell sharply in August 2026, averaging only 1,50,000 barrels per day, compared to a year earlier.

Russian diesel exports, once a significant source of European supply, also declined significantly during the same period. The Ukraine-Russia conflict has further exacerbated the situation, with Ukrainian drone attacks disrupting Russian refineries and export infrastructure. As of July and August, around 32 attacks were reported on Russian refineries, severely impacting their capacity and export capabilities.