India’s Diesel Exports to Europe Double in August Ahead of EU Ban on Russian Oil Products

New Delhi- India’s diesel exports to Europe more than doubled in August as buyers rushed to secure cheaper supplies ahead of the European Union’s upcoming ban on fuels refined from Russian crude, set to take effect in January 2026, market analysts said.

According to data from Kpler, a global real-time analytics provider, India’s diesel exports surged to 242,000 barrels per day (bpd) in August—over twice the level recorded in the same month last year. The 12-month average for exports also rose by 124 per cent.

Analysts attribute the surge to multiple factors, including supply disruptions caused by maintenance shutdowns at Shell’s Pernis refinery in the Netherlands, as well as stockpiling ahead of the winter season.

The EU’s 18th package of sanctions bans the import of refined oil products made from Russian crude, even if processed abroad. This directly impacts Indian refiners like Reliance Industries and Nayara Energy, who have benefited from supplying Europe.

Additionally, the EU has cut the oil price cap for Russian crude from $60 to $47.6 per barrel and introduced a dynamic system ensuring the cap stays 15 per cent below the average market price of Urals crude over the previous six months. The bloc has also expanded its list of sanctioned ships involved in transporting Russian fuels.

Meanwhile, global crude prices slipped on Friday, with Brent crude trading at $66.80 per barrel and U.S. West Texas Intermediate at $63.25, amid expectations of increased OPEC+ production and rising U.S. stockpiles.

With inputs from IANS