India emerges as key diesel supplier to Europe

India supplied about 60 per cent of the diesel transiting through the Bab-el-Mandeb towards Europe in August, strengthening its role as a key source of refined fuel as Russian exports remain depressed and US shipments begin to decline, according to a report.

Around 2,00,000 barrels per day of diesel, or gasoil, crossed the strategic shipping route for Europe last month, close to year-earlier levels after flows nearly stalled in March and April. Indian refiners accounted for roughly 60 per cent of that volume, energy analytics firm Vortexa said in a report.

India, the world’s fourth-largest refiner, has 258.1 million tonnes per annum of installed capacity, above domestic fuel demand. It exported 61.5 million tonnes of petroleum products in 2025-26, making it a major global supplier, PTI reported.

However, sustaining these flows could become difficult. India’s crude and condensate imports fell to about 3.8 million barrels per day in August from 4.8 million barrels per day a year earlier, data showed.

Russian diesel exports averaged only around 1,50,000 barrels per day during the first 25 days of August, down about 6,10,000 barrels per day year-on-year and 81 per cent below the five-year seasonal average. The scheduled easing of Russia’s diesel export ban from September 1 may not quickly restore supplies, with Ukrainian drone strikes continuing to disrupt refineries and export infrastructure. Vortexa recorded 32 refinery attacks across July and August.

The Perm refinery, with capacity of 2,60,000 barrels per day, was left operating at only about 28 per cent of its crude distillation capacity after an attack, while no diesel cargoes have left Tuapse since a May strike.

The US supplied about half of Europe’s seaborne diesel imports from outside the region in August, at around 5,20,000 barrels per day. But shipments fell from nearly 5,40,000 barrels per day in the first half of August to about 3,50,000 barrels per day in the second half.