India to Continue Diesel Exports Despite US Ban Threat

India plans to continue diesel exports despite potential US restrictions, with Hardeep Singh Puri citing contractual commitments and expanding refining capacity amid tighter global fuel markets.

India will continue exporting diesel under existing commitments even if the United States proceeds with restrictions on overseas fuel shipments, Petroleum and Natural Gas Minister Hardeep Singh Puri said, as disruptions linked to geopolitical conflicts tighten global fuel markets.

Speaking at the PAFI 13th Annual Forum in New Delhi, Puri said India would honour its contractual obligations to international buyers. He pointed to the country's investments in refining capacity as a factor supporting its ability to meet both domestic and overseas fuel demand.

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The comments come as the global diesel market faces tighter supplies following disruptions caused by the conflicts involving Russia, Ukraine, Iran and other countries in West Asia. Diesel prices in the United States and Europe have risen sharply, adding pressure on transport, agriculture and other industries that depend heavily on the fuel.

The United States has been considering measures to increase domestic diesel availability amid record-high fuel prices. US President Donald Trump has backed the idea of restricting diesel exports, while Energy Secretary Chris Wright has said a blanket export ban would not be effective and could put upward pressure on gasoline and jet-fuel prices. The White House has also denied reports that a 90-day export ban was being prepared, leaving the policy direction unresolved.

India has become an important supplier in the global seaborne diesel market. According to Kpler data cited by the Economic Times, India has overtaken Russia this year to become the world's second-largest supplier after the United States, accounting for around 10% of global seaborne diesel shipments.

Puri also highlighted India's growing refining capacity. The country's capacity currently stands at about 267 million tonnes per annum (MTPA), and is expected to approach 290 MTPA within a year, with a longer-term target of 320 MTPA by 2030-32.

He cited Indian Oil Corporation's five-year fuel supply agreement with Mauritius as an example of India's continued participation in international fuel markets. The first shipment under the agreement has already reached Mauritius, according to Puri.

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Meanwhile, Saudi Aramco and Abu Dhabi National Oil Company are in discussions regarding investments in India's refining sector. Puri said international energy companies are showing interest in participating in India's expanding downstream market.