India's diesel exports to Europe come down month-on-month by 20% in April

14 May 2024 , 11:57 AM

India’s diesel exports to Europe decreased by a fifth in April due to competition from US and Gulf suppliers and a decline in  demand.

Energy cargo tracker Vortexa reports that diesel exports to Europe fell to 210,000 barrels per day (bpd) in April from 262,000 bpd in March.

India sends more than 40% of its diesel to Europe. India exported 517,000 bpd of diesel overall in April, down 9% from 567,000 bpd in March. On the other hand, exports to Asia increased 33% from 52,000 bpd in March to 69,000 bpd in April.

Indian refiners sell diesel cargoes to markets with relatively greater effective margins, serving a number of nations. These days, in order to avoid possible attacks by Houthi rebels in the Red Sea, tankers carrying Indian diesel typically travel the lengthier trip to Europe via the Cape of Good Hope. In addition to decreasing the competitiveness of Indian goods in the European market, this increases transportation costs and delays.

Europe has been trying to replace Russian diesel with that from other nations since the situation in Ukraine started in early 2022, which has given Indian refiners a lot of profitable prospects.

Diesel exports generated $29 billion in revenue for Indian refiners in 2022–2023 thanks to high worldwide pricing. 2023–2024 saw a drop in prices, which caused India’s diesel export earnings to drop to $22 billion.

Two of India’s top exporters of diesel are Reliance Industries and Nayara Energy, which is supported by Rosneft.

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