New Delhi. Amidst the changing situation regarding diesel supply in Europe, India has emerged as an important supplier. Due to decline in diesel exports from Russia and weakening of fuel shipments from America to Europe, the role of Indian refineries in the European market has increased.
According to Vortexa data, India's share in diesel reaching Europe through the Bab-el-Mandeb route in August was about 60 percent. About 2 lakh barrels of diesel were sent to Europe daily through this route.
Huge decline in Russia's supply
There has been a big decline in marine diesel exports from Russia. Due to attacks on refineries and disruption in export infrastructure, supplies from there to Europe have been affected. Russia's marine diesel exports remained significantly down in the first 25 days of August.
The supply coming to Europe from America is also not as strong as before. In such a situation, India's refining capacity is becoming a big support for Europe.
India's refineries became a strength
India is among the major oil refining countries in the world and its total refining capacity exceeds the domestic requirement. For this reason, India is also a big exporter of petroleum products. However, availability of crude oil may become a challenge for India in future. The arrival of crude oil in the country in August was less as compared to last year. If this shortage continues for a long time, diesel exports may also be affected.
At present, India's importance for Europe has increased rapidly amidst weak supplies from Russia and America. This is indicating further strengthening of India's role in the global energy market.