India has resumed direct diesel shipments to Vietnam after an eight-year gap, with the latest cargo supplied from Reliance Industries’ refinery complex in Jamnagar, Gujarat. The shipment marks the first direct Indian diesel cargo to reach Vietnam since 2018, according to ship-tracking data and trade sources.
The cargo, carried aboard the Panamax tanker Magic Victoria, comprised approximately 70,000 tonnes of diesel and was delivered to Vietnam. The shipment highlights a renewed opportunity for Indian refiners to supply Southeast Asian markets as regional fuel trade patterns adjust.
A key factor behind the renewed trade is Vietnam’s decision to reduce its most-favoured-nation import duty on diesel from 7% to zero. The zero-duty arrangement, introduced in March, has been extended through September 30, 2026, making imports from a wider range of suppliers more competitive.
Vietnam traditionally sources much of its diesel from South Korea and other Southeast Asian suppliers. The removal of import duties has, however, created additional opportunities for refiners outside the region, including India.
India has become an increasingly important supplier of refined petroleum products to international markets, supported by the large-scale refining capacity at Jamnagar. Indian refiners have the ability to supply markets on both sides of the Suez Canal, giving them flexibility to redirect cargoes depending on regional pricing and demand.
The latest shipment comes against a backdrop of tighter refined-fuel markets in Asia. Disruptions to crude and product flows linked to geopolitical tensions have affected regional supply patterns, while Indian diesel exports have remained an important source of additional supply.
Trade sources indicated that Indian diesel cargoes have helped support Asian 10-ppm gasoil cash premiums, which have remained around $5-$6 per barrel, despite concerns over tighter supplies in markets west of the Suez Canal.
However, the economics of sending Indian diesel to Southeast Asia remain sensitive to freight rates and regional price spreads. One trade source noted that Indian cargoes can often achieve better returns when shipped to markets west of Suez rather than to Southeast Asia.
The return of direct Indian diesel supplies nevertheless provides Vietnam with another source of refined fuel and gives Indian refiners greater access to the Southeast Asian market.
For the shipping and energy sectors, the development is significant because it creates additional tanker demand and demonstrates how changes in import duties can quickly reshape regional petroleum-product flows. If Vietnam maintains favourable tariff conditions, more Indian diesel cargoes could potentially move toward the country in the coming months.
The first shipment in eight years therefore signals a potential reopening of an India-Vietnam refined-fuel trade route, although the continuation of direct flows will depend on fuel prices, freight economics, refinery export availability and Vietnam’s import policy.