India has emerged as a key player in supplying refined fuel to Europe, especially since the outbreak of the Russia-Ukraine war in 2022. As European countries impose sanctions on Russian oil, India’s refined fuel exports to the eurozone have surged. In 2024, exports to Europe excluding Russia saw a striking 75 per cent increase compared to 2022 levels, reflecting a shift in supply dynamics.
Data from commodity market analytics firm Kpler reveals that India's refined fuel exports to Europe reached an all-time high of approximately 4,00,000 barrels per day (bpd) in November, with the final figures set to be updated later in the month.
"Saudi Arabia is one of the major exporters of refined products to Europe. However, Saudi's 670 kbd Yanbu refinery will undergo planned maintenance at its 430 kbd CDU in November and December. As a result, diesel exports from India are expected to remain robust during this period," explained Sumit Ritolia, senior oil refining analyst at Kpler.
The spike in India's fuel exports comes at a time when Europe is preparing for the winter season, which also sees a rise in demand for winter-specific diesel. Additionally, several European refineries have reduced their output due to seasonal maintenance and weak refinery margins. This has created a gap in supply, which India is poised to fill. India’s Reliance Jamnagar refinery, known for its ability to produce winter-grade diesel, has played a significant role in meeting European demand.
“Exports of refined oil products from India surged in October and November, driven by refinery shutdowns in Europe, which increased import demand. Since September, European refiners have reduced processing rates (run cuts) due to seasonal maintenance and weak refinery margins, limiting local supply. Additionally, as Europe heads into the winter season, the need for winter-spec diesel has grown. India's Reliance Jamnagar refinery... has played a key role, with a significant portion of European imports from India coming from this facility,” Ritolia noted.
The report shows that India’s fuel exports to Europe were up by 59 per cent in October, reaching 3,35,000 bpd compared to 2,10,000 bpd in September. November exports are projected to rise further to around 4,40,000 bpd. India's total fuel exports to Europe in the first 10 months of 2024-25 amounted to 2.551 million barrels per day (kbd), up from 1.459 kbd in 2022.
In addition to the growth in exports, India’s refining capacity benefits from processing discounted crude oil from Russia, now constituting around 40 per cent of India's total crude imports, up significantly from just 0.2 per cent before the Russia-Ukraine conflict.
India’s role as a leading refined fuel supplier to Europe was solidified in October when it became the third-largest exporter, following the US and Saudi Arabia. The US led the exports with 5,77,000 bpd, while Saudi Arabia exported 3,66,000 bpd. India’s exports mainly consist of diesel and jet fuel. In October, 2,38,000 bpd of diesel and 81,000 bpd of aviation fuel were sent to Europe, marking a significant increase from the previous month's numbers.