Hardip Singh Puri, India's Minister of Petroleum, announced on September 24 that his country will continue to export oil products, including diesel, and will adhere to its commitments in global markets. These statements come at a time when geopolitical tensions in the Middle East and the Russia-Ukraine war have raised concerns about the supply of oil products.
Significant Decline in Oil Exports
According to statistics from the Ministry of Petroleum of India, the country's oil product exports in August decreased by 40 percent compared to the previous year, reaching 2.7 million metric tons. Additionally, exports during the four-month period from April to August fell by 46.7 percent to 11.2 million tons. For the fiscal year 2025-2026, exports reached 46.2 million tons, indicating a 9.2 percent decrease compared to the previous year.
This decline in exports occurs as India, the fourth-largest oil producer in the world, is one of the main suppliers of refined oil products for European and African markets.
Impact of Global Crises on Fuel Supply
Puri referred to existing concerns regarding diesel fuel supply and added that the United States government is considering restrictions on diesel exports to control prices. This could lead to an increase in global shortages and exacerbate the diesel crisis in Europe. In this context, diesel prices in global markets have reached their lowest levels.
Analysts believe that U.S. diesel exports to other countries have helped compensate for shortages arising from the Middle East and Russia. If these exports stop, the immediate impact will be felt more in Europe and Latin America.
India's Energy Supply Strategy
The Indian Minister of Petroleum also mentioned diversifying the country's oil sources, stating that India has managed to overcome existing challenges by sourcing oil from 41 different countries. Crude oil exports from the Middle East to India in September averaged 2.16 million barrels per day, an increase from 1.50 million barrels per day in July and 1.66 million barrels per day in August.
Puri also addressed concerns regarding liquefied gas supply, stating that domestic refineries have been able to alleviate these issues by increasing production. He added that the Hormuz crisis has provided an opportunity to boost liquefied gas production.
Overseas Investment Strategies
India continues to invest in overseas oil projects, and this strategy is considered one of the government's main priorities. State-owned companies like ONGC and Oil India have stakes in oil projects in Brazil and Mozambique and are seeking to enhance the country's energy security.
According to Mani Anavand, a senior analyst at CERA, India's national oil companies are looking to invest in production assets and near-development projects to quickly increase reserves and output. At the same time, they are under pressure to expand domestic exploration and production activities.
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