Diesel exports to Europe surge! In June, India’s diesel exports to Europe experienced a significant surge, quadrupling from the previous month as refiners capitalized on the continent’s more favorable margins. According to Vortexa, an energy cargo tracker, Indian refiners exported 119,400 barrels per day of diesel to Europe in June, a substantial increase from May’s 24,500 barrels per day.
Despite this growth, India’s overall diesel exports saw a 4% decline, amounting to 482,400 barrels per day.
Indian refiners, primarily Reliance Industries and Rosneft-backed Nayara Energy, cater to both Eastern and Western markets, offering diesel, petrol, and jet fuel. The destination of Indian fuel cargoes is largely determined by demand and price arbitrage in different geographical regions.
According to a report, Europe emerged as a major recipient of India’s diesel shipments, accounting for a quarter of the total exports. Conversely, supplies to Asia experienced a 10% decrease, falling to 107,800 barrels per day in June.
Other markets, including Africa, witnessed a nearly 30% reduction in shipments from India. Serena Huang, an analyst at Vortexa, attributed the rebound in India’s diesel exports to Europe to “improved arbitrage economics to the West, and weaker margins to Asia.”
India’s overall refined products exports also decreased by 5% in June compared to the previous month, totaling 1.19 million barrels per day. Europe received 17% of Indian supplies, while Asia accounted for 27%.
In the fiscal year 2022-23, Indian refiners generated revenues of $29 billion from diesel exports as prices soared following the Ukraine war. However, as markets stabilized, realisations declined to $22 billion in FY24.
The Ukraine war compelled Europe to reduce its dependence on Russian diesel supplies, leading to increased imports from the Middle East, the US, and India, which have largely replaced Europe’s Russian imports.