Buyers are building inventories as the EU considers measures to halt imports of fuels refined from Russian oil
India’s diesel exports to Europe have more than doubled over the last year, reaching a maximum of 242,000 barrels per day, the Economic Times reported on Thursday, citing market data from two analytics firms.
Kpler data showed that India’s diesel exports rose 73% from July and were 124% above the past year’s average. Similarly, Vortexa estimates India’s August diesel exports at 228,316 barrels per day, up 166% from last year and 36% higher than July.
EU buyers have rushed to build inventories in anticipation of a ban on fuels refined from Russian crude, as part of potential sanctions, according to reports.
The EU is weighing its 19th package of sanctions against Russia over the Ukraine conflict, which will also include countries that the bloc claims are helping Moscow bypass Western restrictions, according to multiple media reports.
Russia has emerged as India’s key oil supplier since the escalation of the Ukraine conflict in February 2022 – accounting for nearly 40% of India’s crude imports. In parallel, India has become a major exporter of refined fuels to Europe since 2023. Indian private companies import oil at a cheaper rate from Russia and sell refined products to Europe.
US President Donald Trump has imposed duties on most Indian products, which include a 25% tariff announced in early August followed by an additional 25% levy last week, as a “penalty” for India’s purchases of Russian oil and defense equipment – actions Trump claims have indirectly fueled the Ukraine conflict.
India, however, is set to increase its imports of Russian oil in September, Reuters reported last month. Sources quoted by the news agency said private Indian refiners Nayara Energy and Reliance Industries intend to raise their purchases by 10-20% over August levels, which would add an extra 150,000-300,000 barrels per day.
Last month, Trump’s trade adviser, Peter Navarro, claimed India has no need to import Russian oil and accused the country of “profiteering” from the oil trade.
