India’s diesel exports are expected to rise sharply from 2027, strengthening the country’s position in global refined fuel markets as state-run oil companies expand their refining capacity, industry officials said on Tuesday, as reported by Reuters.
The increase is likely to bolster India’s role as a swing supplier of refined petroleum products, allowing it to respond to shifts in global demand and supply. International fuel markets have faced disruptions due to the US-Iran and Russia-Ukraine conflicts, which have affected trade flows and pushed up freight rates worldwide.
In 2027, Indian state refiners will together increase their diesel production capacity by 16.5 million tons as they boost capacity of existing refineries, officials said.
As per the Reuters report, Hindustan Petroleum Corp’s new 9-million-tpy refinery in the western state of Rajasthan will turn out 3 million tpy of diesel next year, once the refinery stabilises, said Chairman Vikas Kaushal.
Further, Bharat Petroleum Corp plans to produce 1.5 million tpy extra diesel from next year, its chairman, Sanjay Khanna, said. Oil India’s subsidiary Numaligarh refinery in the eastern region, which will be expanded to 9 million tpy in March next year, will add 3 million tpy of diesel production, the report said.
No pressure from US to reduce Russian crude imports:
Minister Puri said India has faced no pressure from the US to reduce its Russian crude imports.
Puri said West Asia oil supplies have been rising as the region is able to ship out more cargoes, and added that India was getting 0.2% of its oil imports from Russia before the Ukraine war, while imports have surged since the war started due to discounts on Russian oil.
India’s imports of West Asian crude oil surged in September, returning to pre-war levels, while its refiners cut back purchases of Russian oil amid stiff competition from China, ship-tracking data showed.
“The purchase of Russian oil is linked to discounts and pricing when compared with other grades. Russian oil imports have been reduced as the refiners are buying more Gulf oil sold at a discount,” he added.
“Whatever people say or do, ultimately it is anchored in their self-interest,” he said.