Heavily dependent on India for its needs. Fuel supplies from Russia have been halted for a long time, and diesel exports from the US to Europe have also declined significantly. According to the latest data of international energy analysis firm 'Vortexa', Indian refineries are playing a very important role in meeting the fuel needs of Europe in such an emergency. The same Europe was accusing India of buying crude oil from Russia and helping in the war in Ukraine.
In March and April, trade through the Bab-el-Mandeb sea route came to a near halt due to tensions in West Asia. However, this path became normal in August. In August, about 200,000 barrels of diesel and gas oil were transported daily on Europe-bound ships via this route. Dominance of Indian refineries: About 60 percent of the total seaborne supply is exported from Indian oil refineries alone. This has further strengthened India's position in the European fuel market.
India has huge refining capacity
India has now become a global superpower in the field of mineral oil refining. India is the world's fourth largest refining hub and the country's total installed annual capacity is about 258.1 million tonnes (258.1 million tonnes), which is several times more than the country's domestic consumption. India exported about 61.15 million tonnes of petroleum products abroad in the financial year 2025-26.
Why has supply from Russia and US slowed down?
There has been a disruption in the supply chain of two big countries supplying fuel to Europe. Ukraine's drone attacks have caused major damage to many of Russia's most important oil refineries. This also includes 'Perm Refinery' with 2.6 lakh barrel daily capacity. Diesel export from 'Tupsa' port is still suspended after the attack in May. Because of this, Russia's seaborne exports fell to just 1.5 lakh barrels per day in the first 25 days of August. In the first half of August, 5.4 million barrels of diesel were moving from the US to Europe per day. But, in the second half of the month this supply chain fell to 3.5 lakh barrels per day.
Diesel shortage in Europe ahead of winter In Europe, demand for diesel for home heating and transportation reaches its peak in winter. Right now, diesel stocks in Europe are already at very low levels, while local European refineries are being closed for routine maintenance. Tension in the 'Strait of Hormuz' has also reduced the help received from Gulf countries. Therefore, European countries are now looking at Indian diesel supply as the only reliable option to avoid serious crisis in winter.
Reduction in crude oil imports is a challenge for India.
Although these exports to Europe are increasing rapidly, India may have to face the challenge of supply of crude oil. According to Vortexa data, India's crude oil imports fell to 3.8 million barrels per day in August from 4.8 million barrels per day at the same time last year. Indian companies will have to find new alternatives to crude oil to meet domestic demand and continue exports to Europe.
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