India’s Fuel Exports Set to Surge as Refining Capacity Hits Record High

India is on track for a sharp jump in petroleum product exports next year, backed by the country’s largest annual increase in refining capacity in several decades — an addition of over 32 million tonnes, or roughly 646,000 barrels per day.

This capacity boost comes at a time when global markets are grappling with a tight supply of key fuels like diesel, jet fuel, and gasoline, a squeeze that has been pushing up both refining and export margins worldwide. The information draws on government and company data, ship-tracking records, and conversations with senior industry executives.

Shipments of Indian petroleum products already touched a 10-month peak in July, driven by renewed demand from European buyers. Looking at the broader trend, exports during the April-June quarter brought in $12.7 billion from 11.3 million tonnes shipped — accounting for about 10% of India’s overall goods exports. That marks a notable rise in value compared to the same period last year, when 15 million tonnes fetched $9.1 billion, underscoring how much product prices have strengthened even as volumes were lower.

This robust overseas performance in fuel sales is proving useful on two fronts for the Indian economy — helping to keep the country’s trade deficit from widening further, and offering some support to a currency that has been under depreciation pressure.