India’s diesel exports are expected to rise from 2027 as state-run oil refining companies expand production capacity, strengthening the country’s position in global refined fuel markets, according to a Reuters report.
The expansion is expected to enhance India’s role as a key swing supplier of refined petroleum products amid disruptions to global fuel trade caused by the US-Iran and Russia-Ukraine conflicts, which have affected supply chains and pushed up freight rates.
“We will be in a happy situation of not only refining for ourselves but for the world,” Oil Minister Hardeep Singh Puri said.
India aims to increase its overall refining capacity to 300 million tonnes per year by 2030, with plans to expand it further to 400 million tonnes annually at a later stage.
According to ship-tracking data from Kpler, India has emerged as the world’s second-largest exporter of seaborne diesel this year, behind the United States. The development comes as refinery closures and geopolitical disruptions tighten global fuel supplies, prompting operating refineries to maintain high utilisation rates.
Indian state-run refiners are expected to add a combined 16.5 million tonnes of annual diesel production capacity in 2027 through expansion projects at existing refineries, officials said.
The additional capacity is expected to strengthen India’s export potential and reinforce its growing importance in meeting global demand for refined petroleum products.