India’s diesel exports to Europe rose 42% year-on-year in December on a combination of winter demand and the near absence of Russian supplies in the continent.
India exported 248,000 barrels per day (bpd) of diesel to Europe in December, up from 175,000 bpd in December 2022 and 247,000 bpd in November, according to energy cargo tracker Vortexa.
India’s overall exports rose 17% year-on-year in December to 637,000 bpd. Europe’s share in India’s diesel exports was 39% in December, up from 32% in December ’22 and 37% in November.
India didn’t export any diesel to the US in December. The share of the US in India’s total diesel exports was 14% in December ’22 and 4% in November.
India’s diesel export growth “is a result of strong refinery runs and softer domestic demand ,” said Serena Huang, analyst at Vortexa.
In November, diesel exports grew 43% year-on-year to 669,000 bpd. Indian refineries ran above their nameplate capacity of 5 million barrels per day (mbd) in November, processing 5.17 mbd of crude. Domestic diesel demand fell 3% year-on-year in November, leaving refiners with a surplus to export.
In December, the domestic consumption of diesel again fell 2.5% year-on-year but was just about 1% higher than in November.
Europe has become a large consumer of Indian diesel after it imposed sanctions on the import of diesel from its traditional supplier Russia. India’s exports of diesel shifted significantly to the West from other markets after the outbreak of the Ukraine war, which prompted western nations to shun Russian refined products.
India has been a significant exporter of diesel for years. It exported 28% of the diesel it produced in November. Reliance Industries and Rosneft-backed Nayara Energy are the two main exporters of diesel in India. Diesel comprises about 40% of all refined products consumed in India.