India diesel exports will surge from 2027, industry officials said on Tuesday. By then, state refiners will add 16.5mn tonnes a year of diesel output. Already, India is the second-largest seaborne diesel exporter this year after the US, Kpler data show.
Where India diesel exports will come from
Indian Oil leads the push. Its chairman A S Sahney said it aims to add about 18mn tonnes of yearly capacity. That would yield about 8mn tonnes of diesel. Next, HPCL’s new 9mn-tonne Rajasthan refinery will make 3mn tonnes of diesel once it stabilises. Similarly, Oil India’s Numaligarh refinery will expand to 9mn tonnes in March and add 3mn tonnes. Finally, BPCL plans 1.5mn tonnes of extra diesel.
Why it matters
Until now, private refiners Reliance and Nayara have done most of the exporting. In contrast, state companies mainly supply the home market. However, new capacity will cut their purchases from other refiners and free up fuel for export.
Overall, India plans 300mn tonnes a year of refining capacity by 2030, and 400mn later. “We will be in a happy situation of not only refining for ourselves but for the world,” Oil Minister Hardeep Singh Puri said.
Read our report on India’s product exports this quarter.
For a deeper analysis, read: India Diesel Exports: How 16.5mn Tonnes of New Output Makes India a Swing Supplier
