India’s refined petroleum product exports jumped sharply in July as global supply disruptions lifted demand and refining margins.
Strong diesel cracks and rising shipments to Europe and South America are helping refiners offset recent losses.
Highlights
- India exported 1.527 million barrels per day of refined products in July.
- Shipments increased 23.2% from 1.239 million barrels per day a year earlier.
- July exports were 45.7% higher than the previous month.
- Diesel refining margins rose to around $45–50 per barrel.
- Supply disruptions in Russia and West Asia boosted demand for Indian fuel.
- Indian refiners benefited from ample crude availability and weaker domestic monsoon demand.
Indian oil refiners are witnessing a strong export opportunity as refined petroleum product shipments rose to a five-year July high amid global supply disruptions and elevated fuel margins.
India exported around 1.527 million barrels per day of refined petroleum products in July 2026, according to data cited from Kpler. This was 23.2% higher than the 1.239 million barrels per day exported during the same month last year.
The latest export volume was also nearly 19.5% above the previous five-year July high of 1.278 million barrels per day recorded in 2024. Compared with the five-year July average of 1.192 million barrels per day, shipments were around 28% higher.
Exports recovered sharply after falling to 919,900 barrels per day in May. They increased to 1.048 million barrels per day in June and then jumped 45.7% month-on-month in July.
The surge has been supported by disruptions in global refining and fuel supply. The US-Iran conflict, lower refinery activity in West Asia, Russia’s diesel export restrictions and weaker Chinese refinery runs have reduced product availability in international markets.
These developments have pushed up margins for diesel, petrol and aviation turbine fuel. Diesel cracks, which measure the difference between crude oil prices and the value of refined diesel, have reportedly reached around $45–50 per barrel.
Strong margins are helping Indian refiners earn more from exports and may provide some relief after a difficult first quarter. IndianOil, Bharat Petroleum and Hindustan Petroleum together reported net losses of ₹18,149 crore in the June quarter.
Demand for Indian fuel has increased across European and South American markets, including Brazil. Russia’s reduced diesel shipments have created additional space for alternative suppliers, as the country is one of the world’s largest diesel exporters.
India’s refining advantage has also been supported by sufficient crude oil supplies, the completion of maintenance work at major refineries and weaker domestic fuel demand during the monsoon season. This has left more diesel, petrol and other petroleum products available for overseas markets.
However, the current export boom may not be permanent. It is largely driven by war-related disruptions, damaged refining infrastructure and temporary product shortages. Refining margins could decline once supplies from Russia, West Asia and China recover.
