India Says It Will Keep Exporting Diesel

India reaffirmed its commitment to exporting diesel, aiming to meet global demand and alleviate fuel shortages, Oil Minister Hardeep Puri announced at an industry event in New Delhi. Puri highlighted that India's refining capacity stands at around 5.36 million barrels per day (bpd) and is projected to expand to 5.8 million bpd within the next year.

By 2032, the country plans to achieve a refining capacity of 6.4 million bpd. Puri pointed out that India's refining capacity is rising while other regions experience declining output. This capacity growth underscores India's increasing energy requirements, the robustness of its refining sector, and its dedication to energy security.

The Indian minister noted that the United States has raised the possibility of banning diesel exports, but India intends to maintain its export activities. Global diesel markets have tightened recently due to several factors, including restricted valves and inadequate supply. Despite increased flows from the Strait of Hormuz, only 1 million bpd of the estimated 10 million bpd outflow consists of refined products.

The remainder comprises crude oil. Refinery capacity in the Middle East is hindered by Iranian attacks on refineries, while restricted capacity in Russia stems from Ukrainian drone strikes. Russia has imposed a diesel export ban until the end of September, with the possibility of extending it through October. Additionally, China limited fuel exports from April to July, and could potentially restrict shipments again in October due to multi-year-low domestic diesel and gasoline inventories.