India’s diesel exports rose to their highest level in one year in September, as strong profits from refining and growing demand in Europe encouraged Indian refineries to send more fuel overseas.
India exported around 620,000 barrels of diesel per day in September, according to commodity analytics firm Kpler, as reported by The Economic Times. Nearly half of these exports, around 280,000 barrels per day, went to Europe.

Why did India export so much diesel?

The main reason was higher profit from selling diesel abroad.

Diesel prices and refining margins rose sharply in September because supply was disrupted in several parts of the world. The difference between the price of diesel and the cost of the crude oil used to make it — known as the refining margin — became unusually high.

Kpler said Singapore diesel margins against Dubai crude were above $60 per barrel in September, giving Indian refiners a strong incentive to produce and export more diesel.

Europe was a major destination because its diesel supply was under pressure. Refinery disruptions in Saudi Arabia, limited Russian fuel supplies and wider disruptions linked to the West Asia conflict tightened the European market. India's large refining capacity allowed its refiners to fill part of that gap.

Where did India's diesel go?

Of the roughly 620,000 barrels per day exported in September:

• Europe: about 280,000 barrels per day

• Africa: about 200,000 barrels per day

• Asia: about 50,000 barrels per day

• Americas: about 40,000 barrels per day

• Other/unknown destinations: about 50,000 barrels per day

India's diesel exports are particularly significant because the country has a large refining industry. India imports crude oil, processes it in its refineries and then sells refined products such as diesel, petrol and aviation fuel both in the domestic market and overseas.

The latest increase also comes at a time when global diesel supplies are tight. China has suspended fuel exports for October to protect its domestic stocks, while disruptions in Russia and the Middle East have further reduced supplies available to international markets.

For India, the September numbers show how its large refining capacity is allowing the country to become an important supplier of diesel to markets facing shortages.