India Emerges as Key Diesel Supplier to Europe Amid Global Supply Squeeze

India has emerged as an important supplier of diesel to Europe as Russian exports remain severely constrained and US shipments to the region have started to decline, according to data from energy and freight analytics firm Vortexa.

About 2,00,000 barrels per day of diesel transited the Bab-el-Mandeb in August on vessels bound for Europe, with Indian refineries supplying roughly 60 per cent of that volume. Flows through the key shipping route had nearly stalled in March and April.

India has an installed refining capacity of 258.1 million tonnes per annum, exceeding domestic fuel demand. The country exported 61.5 million tonnes of petroleum products during 2025-26, according to the report.

However, crude and condensate shipments into India fell to about 3.8 million barrels per day in August, compared with 4.8 million bpd a year earlier, Vortexa data showed.

Russian seaborne diesel and gasoil exports averaged around 1,50,000 bpd during the first 25 days of August, down about 6,10,000 bpd from a year earlier. Vortexa attributed the decline to disruptions to Russian refineries and export infrastructure, including Ukrainian drone attacks.

The US supplied about 5,20,000 bpd of Europe’s seaborne diesel imports from outside the region in August. However, shipments fell from nearly 5,40,000 bpd in the first half of the month to about 3,50,000 bpd in the second half.

The report also said movements of clean petroleum products through the Strait of Hormuz remained limited, with 37 crossings by MR2-sized or larger tankers carrying clean products recorded during the first 27 days of August.

Europe is also approaching its peak winter diesel-demand period, while refineries in Europe and the US are due to undergo autumn maintenance. PTI ANZ BAL BAL