India has pledged to honour its overseas fuel supply commitments as disruption in the Middle East and falling Russian refinery output put pressure on the global diesel market.
Petroleum Minister Hardeep Singh Puri said India would continue exporting petroleum products, including diesel, despite mounting uncertainty over international supplies. Speaking at an industry event in New Delhi on September 24, he said the country’s wider network of crude suppliers had helped it manage the disruption.
“We will continue with product exports and honor our export commitments,” Puri said.
The assurance comes as importers face a shrinking pool of available diesel, a fuel essential to freight transport, farming and construction. Financial Express reported that India’s refining industry was playing an increasingly important role in supplying overseas markets as other major exporters faced constraints.
The International Energy Agency estimates that global seaborne diesel and gasoil exports averaged 4.7 million barrels a day during the first eight months of 2026, down 10 per cent from the same period last year. Increased shipments from the United States and a recovery in Asian exports have only partly compensated for losses from Russia and the Middle East.
Repeated Ukrainian attacks on Russian refineries have reduced the country’s ability to produce fuel. According to the agency, Russian diesel production has fallen by nearly 30 per cent compared with 2025 levels, prompting export restrictions aimed at protecting domestic supplies. Russia extended its ban on diesel exports by fuel producers through the end of October, Reuters reported on September 30.
Uncertainty over US export policy has added to concerns. American officials have considered measures to retain more diesel domestically as pump prices rise, although Energy Secretary Chris Wright said on September 23 that a complete export ban was unlikely.
India, meanwhile, is looking to expand its refining industry. Puri said Saudi Arabia and the United Arab Emirates had expressed interest in investing in the sector, with capacity expected to grow from about 5.4 million barrels a day to between 6.2 million and 6.4 million through new projects and upgrades.
Its ability to supply additional fuel nevertheless has limits. S&P Global Energy analyst Premasish Das said India’s export surplus had narrowed and Asian diesel supplies were already tighter than normal. Even without an immediate physical shortage, Asian buyers could face higher prices if US exports were restricted.
The IEA expects global diesel markets to remain under pressure for months unless refining activity recovers in Russia or the Middle East, or demand falls sharply. India’s commitment offers reassurance to its buyers, but replacing the missing supplies will depend on how much fuel refiners can make available while meeting domestic demand. (Source: financialexpress.com)
