India to honor oil product export commitments despite global supply concerns: Puri
India will honor its overseas commitments for petroleum products, including diesel, Oil Minister Hardeep Singh Puri said Sept. 24, assuring global markets that the country would maintain supplies despite geopolitical tensions in the Middle East and the Russia-Ukraine conflict. “We will continue with product exports and honor our export commitments,” Puri said at an industry ...
Indian Oil Minister Hardeep Singh Puri assured global markets that the country will honor its commitments to export petroleum products, including diesel, despite ongoing geopolitical tensions in the Middle East and the Russia-Ukraine conflict. Puri emphasized that India, the world's fourth-largest refining nation, will continue exporting refined petroleum products to European and African markets, despite a 40% year-over-year decline in petroleum product exports to 2.7 million metric tons in August.
Concerns over diesel supply shortages emerged following US President Donald Trump and US Treasury Secretary Scott Bessent's discussions about potential restrictions on diesel exports, in response to rising pump prices. While US Energy Secretary Chris Wright indicated that a full ban on diesel exports was unlikely, the Platts-assessed gasoil exchange of futures for swaps hit an all-time low on September 23.
However, it recovered slightly by September 24. Premasish Das, S&P Global Energy CERA's executive director for oil analytics, noted that US diesel exports had helped offset supply losses from the Middle East and Russia. If US exports were discontinued, Europe and Latin America would be most affected. Despite these challenges, India has managed to navigate the disruption and maintain its position as the world's third-largest crude oil consumer and importer, thanks to government measures such as diversifying crude supplies across 41 countries and reducing taxes on oil and petroleum products.
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