India won't cut diesel exports: Puri

Oil Minister Hardeep Puri reaffirmed India's commitment to continue exporting diesel despite potential US restrictions, as the country's refining capacity is expanding to meet both domestic and global demands. India currently supplies around 10 percent of global diesel shipments, overtaking Russia this year, and is projected to increase its refining capacity to nearly 320 MTPA by 2030-32, according to Puri.

The global diesel market has tightened due to the US-Iran conflict and the Russia-Ukraine war, with diesel prices surging faster than crude oil. This has put pressure on various sectors, including truckers, farmers, and construction firms, leading to inflationary concerns. US pump prices have reached record highs, prompting speculation of a possible diesel export restriction to safeguard domestic supply. However, no final decision has been made by Washington.

Puri highlighted India's reliability as a fuel exporter through state-run Indian Oil Corp's five-year supply agreement with Mauritius, with the first cargo already arriving. He emphasized that reneging on such contracts could damage buyer confidence in Indian shippers. Moreover, foreign majors like Saudi Aramco and Abu Dhabi National Oil Co. are exploring investment opportunities in India's growing refining sector, signaling a positive outlook for the country's downstream fuel market.