Global Diesel Crunch: India Says It Will Keep Exporting
As the US weighs a diesel export ban amid record prices, Hardeep Puri says India will honour its fuel commitments, backed by refining capacity set to hit 290 MTPA.
Key Highlights
- India's stand: Petroleum Minister Hardeep Singh Puri said India "honours its commitments" and will keep diesel shipments going even if the US bans exports.
- The capacity: India's refining capacity is about 267 MTPA, set to reach nearly 290 MTPA within a year and 320 MTPA by 2030–32.
- The US move: President Trump has backed a diesel export ban as US prices hit records, but his administration is divided on it.
- Global stakes: The US is the world's largest diesel exporter, sending about 1.3 million barrels a day abroad.
- Europe exposed: The UK gets about 31% of its diesel imports from the US.
The war involving the US and Iran, along with the Russia-Ukraine conflict, has pushed global diesel markets into a crunch. Industrial fuels have rallied far more than crude oil itself, hurting businesses, farmers and consumers and fuelling inflation.
Against that backdrop, India has positioned itself as a steady supplier. Speaking at a recent PAFI event, Petroleum Minister Hardeep Singh Puri said India "honours its commitments" and would continue diesel shipments even if the US moves ahead with export restrictions.
India's Refining Bet
Puri credited years of investment in refining. India's capacity stands at around 267 million tonnes per annum (MTPA). "Within the next year, we are poised to reach nearly 290 MTPA, with a target of 320 MTPA by 2030–32," he said. While refining capacity is shrinking in several parts of the world, India is building new refineries and expanding existing ones.
