October 31, 2026: India is pumping out diesel and shipping it around the world to meet soaring demand from countries scrambling to secure supplies. Indian refineries are running at full tilt to cash in on the boom, even as the country grapples with a soaring bill for crude oil imports.

India is already the world’s second-largest exporter of seaborne diesel after the United States. Now, state-owned refiners are also preparing to inject even more of the fuel that powers farms, factories, and trucks into the global market in 2027 as they expand capacity.

But there’s a sting in the tail. While refiners are raking in money from the global fuel shortage, India is paying hefty premiums for the crude oil needed to keep them running.

Diesel exports are expected to reach about 700,000 barrels a day in October, with Europe taking the lion’s share.

“Exports should stay strong, though robust (domestic) demand will limit upside,” says Sumit Ritolia, lead analyst for modelling at data and analytics firm Kpler.

Goldman Sachs has forecast that diesel supplies will remain under pressure throughout 2027.

The biggest winner by far is Reliance Industries, which is shipping out more than 500,000 barrels a day. It is followed by Nayara Energy, 49 per cent owned by Russian oil giant Rosneft.

Other refined products, including aviation turbine fuel, are also in strong demand.

State-owned refiners such as IndianOil, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals export smaller quantities because they must prioritise the domestic market before sending fuel abroad. But they are preparing to add at least 15 million tonnes a year to their diesel production capacity next year, hoping to cash in on global demand through refinery expansions and upgrades.

(Source: The Telegraph)