New Delhi, October 3, 2026 (Yes Punjab News)
India is confident of maintaining its diesel exports despite mounting pressure on global fuel supplies amid the US-Iran war and the Russia-Ukraine conflict, with Petroleum and Natural Gas Minister Hardeep Singh Puri asserting that the country’s expanding refining capacity will enable it to honour its international commitments.
Addressing a recently held Petroleum and Automotive Forum of India (PAFI) event, Puri said India’s long-term investments in refining infrastructure had strengthened its ability to sustain overseas shipments, even if the United States proceeds with restrictions on diesel exports.
“India honours its commitments,” the minister said, highlighting the country’s growing role in the global petroleum market at a time when several economies are facing fuel supply pressures.
India’s refining capacity currently stands at approximately 267 million tonnes per annum (MTPA) and is expected to increase to nearly 290 MTPA within the next year. The country has set a target of reaching 320 MTPA by 2030-32, Puri said.
While refining capacity is declining in several parts of the world, India is expanding its infrastructure through new refinery projects and the modernisation and expansion of existing facilities.
The minister also highlighted India’s domestic fuel distribution network, comprising approximately 107,000 retail outlets, saying none had experienced a fuel shortage. He cited diesel price movements in the United States and neighbouring countries to underline the differences in fuel pricing over the years.
The global diesel market has come under increasing strain as geopolitical conflicts disrupt supplies and push industrial fuel prices higher than crude oil. The resulting increase in energy costs has placed additional pressure on businesses, farmers and consumers, while raising inflationary concerns.
Meanwhile, reports of a possible US ban on diesel exports have raised concerns over the potential impact on international fuel markets, particularly in Europe.
Economists have warned that restrictions on US diesel exports could push inflation in the United Kingdom close to 5 per cent. The warnings come as average petrol prices in the country have reportedly crossed £2 per litre for the first time.
According to forecasts cited in media reports, a prolonged export ban could push prices to £3 per litre and add up to one percentage point to UK inflation, potentially increasing pressure on the Bank of England to raise interest rates.
Separately, reports have indicated that G7 countries are planning to release up to 100 million barrels of diesel and oil over four months to ease supply pressures. The reported move has contributed to a decline in European diesel and Brent crude futures.
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