European nations relying on India; Big boost for Reliance Jamnagar refinery

KOCHI: The tide has turned such that European nations are relying heavily on Indian refineries to meet their fuel requirements. The conflict in West Asia and disruptions in Russian oil supplies have driven up the demand for alternative fuel sources in Europe, creating an opportunity for India. Indian refineries are emerging as key suppliers capable of bridging the gap in global fuel availability. Amid the crisis in West Asia, India was able to help handle fluctuations in the supply of petroleum products, such as petrol, diesel, and aviation fuel.

Petroleum products worth $1.2 billion—processed from Russian crude in India, Turkey, and Brunei—were exported to Western nations. A report by the Centre for Research on Energy and Clean Air (CREA) indicates that these exports represent a 43% increase compared to the month of August. Of this total, products valued at €667 million reached the European Union. Six out of the seven cargoes offloaded at European Union ports originated from the Jamnagar refinery of Reliance Industries in Gujarat.

In January of this year, the European Union banned the import of fuel produced from Russian crude oil. However, the Centre for Research on Energy and Clean Air (CREA) pointed out a gap in the trade of refined products, involving countries such as India.

The disruption of oil refinery operations due to the West Asian conflict, combined with Ukrainian drone attacks, compelled Europe to seek alternative fuel sources. This situation has proven advantageous for Indian oil refineries.

World's Leading Refining Nations

China: 18.48 million barrels per day; Share: 17.8 per cent

United States: 18.43 million barrels per day; Share: 17.6 per cent

Russia: 6.8 million barrels per day; Share: 6.6 per cent

India: 5.8 million barrels per day; Share: 5.6 per cent

In September, India's diesel exports rose to approximately 620,000 barrels per day. Of this, about 280,000 barrels were shipped to Europe—an 80 per cent increase in exports to Europe compared to August.