Key facts
- India will continue exporting diesel to meet global demand.
- India's current refining capacity is approximately 5.36 million barrels per day.
- India aims to increase its refining capacity to 5.8 million barrels per day within the next year.
- By 2032, India targets a refining capacity of 6.4 million barrels per day.
India has affirmed its commitment to continue exporting diesel, aiming to address global demand and alleviate existing fuel shortages. Oil Minister Hardeep Puri stated that India honors its commitments and is actively expanding its refining capacity, a move contrary to trends in other parts of the world where capacity is declining. India's current refining capacity stands at approximately 5.36 million barrels per day, with plans to increase it to 5.8 million barrels per day within the next year and a target of 6.4 million barrels per day by 2032. This expansion reflects India's growing energy needs and its focus on energy security.
The decision comes as global diesel markets have tightened significantly due to various supply-side issues. Several key export regions are struggling to meet demand. Refinery capacity is constrained in the Middle East due to attacks on refineries and limited fuel flows through the Strait of Hormuz. Russia has also restricted diesel exports, with a ban in place until the end of September and likely to extend into October, partly due to Ukrainian drone strikes on its refineries. Furthermore, China had restricted fuel exports earlier in the year and may reduce overseas shipments again in October due to low domestic inventories.