India’s diesel exports to Europe reached an all-time high in September 2025, totaling 1.3 to 1.4 million metric tons. This is the highest level since tracking began in 2017. Strong profit margins and higher European diesel prices encouraged Indian refiners to increase exports.
Why Diesel Exports Surged
Diesel east-west spreads averaged $45 per metric ton in September, up from under $30 in August. European refineries underwent maintenance, reducing local diesel supply and pushing prices higher. This created attractive trading opportunities for Indian refiners.
Indian refineries, which source about one-third of their crude from Russia, increased production to meet growing demand. Total diesel exports for September hit nearly 3 million tons, the highest in five years. Shipping costs also declined by around $10 per ton, supporting export economics.
Impact on Asian Diesel Supply
Higher exports to Europe tightened diesel supply in Asia. This led to an increase in regional fuel premiums, reaching two-month highs. Analysts note that while exports are currently strong, rising domestic demand in India during Diwali may reduce export volumes in October.
India’s Oil Imports from Russia Decline in September 2025
India’s oil imports from Russia fell in September 2025 but still made up about one-third of the country’s total crude oil purchases. The reduction comes amid pressure from the United States, which has urged India to cut Russian crude imports, citing concerns that the revenue supports Russia’s war in Ukraine.
According to Kpler Ltd., India imported 1.61 million barrels per day (mbpd) of Russian crude in September, down from 1.72 mbpd in August 2025. On a yearly basis, imports from Russia dropped by 16%, aligning with industry forecasts shared in August.
Future Outlook
Despite potential seasonal declines, high product margins may encourage continued exports. Traders remain cautious, awaiting clarity on EU sanctions affecting refined products from Russian crude, which could influence future diesel exports from India.
Overall, India’s record diesel exports highlight the country’s growing role in global fuel markets and its ability to capitalize on profitable trade opportunities in Europe.
