India’s middle distillate exports to remain robust as European diesel stocks tighten

India's middle distillate exports reached a one-year high in September, driven by strong demand overseas and declining European diesel inventories, according to refinery sources and analysts. The country's export duties were lowered in September, encouraging private refiners to tap overseas markets as global product supplies tighten and prices surge.

India's middle distillate exports grew to nearly 740,000 barrels per day in September, comprising about 57% of the nation's total oil product exports. Gasoil shipments increased to 586,000 b/d, representing 45% of total exports and 43% above the average for the first half of 2026. The windfall gains tax on diesel and jet fuel exports was reduced in October, while retaining the previous rate for gasoline.

India's exports to Europe and the Mediterranean region hit a year-to-date high of 298,000 b/d in September, with gasoil accounting for 215,000 b/d. Gasoil exports to Europe and the Mediterranean region surged by 11% month-over-month, totaling 83,000 b/d in September. India's jet fuel and kerosene exports nearly doubled month-over-month to 154,000 b/d in September, primarily to Europe and the Mediterranean region.

Strong loading activity is anticipated in October, with India having loaded 747,000 b/d of middle distillates as of October 12, with gasoil accounting for 79% of the shipments. The Asian ultra-low sulfur gasoil complex is expected to be volatile throughout October due to the G7's commitment to release diesel stocks and the Russian government's partial lifting of its diesel export ban.