India Maintains Diesel Exports Despite US Restriction Threats

Oil Minister Hardeep Singh Puri announced that India will maintain its diesel exports regardless of potential shipment restrictions from the United States. Speaking at the PAFI 13th Annual Forum in New Delhi, Puri stated that India will honor its existing contracts, citing a five-year supply agreement between Indian Oil Corp and Mauritius as a primary example of the country's reliability.

The announcement follows a directive from President Donald Trump, who asked economic advisers to consider restricting U.S. diesel exports to combat record-high domestic pump prices. This potential shift in U.S. policy has raised concerns within the European Union, occurring as global diesel markets tighten due to refinery disruptions in Russia and the Middle East, as well as ongoing conflicts in West Asia and the Russia-Ukraine war.

India currently serves as the world's second-largest seaborne diesel exporter, representing roughly 10% of global shipments. To strengthen this position, the government plans to increase refining capacity from 267 MTPA to 320 MTPA by 2030-32. Further growth is expected as Saudi Aramco and the Abu Dhabi National Oil Co. engage in talks to invest in India's downstream fuel market.