New Delhi: India, a member of BRICS, has become Europe’s top supplier of refined fuel, overtaking Saudi Arabia, reported by trade intelligence firm Kpler. In light of new Western sanctions on Russian oil, Europe’s refined oil imports from India are expected to exceed 360,000 barrels per day, significantly altering global energy trade routes.
Saudi Arabia is among the world’s leading oil producers and has maintained a dominant position in the oil trade for decades. However, with Russia’s exit from the European market, the continent is seeking new alternatives to secure its fuel supply.
Before the Russia-Ukraine conflict, Europe imported an average of 154,000 barrels of oil daily from Indian refiners. This number rose to 200,000 barrels per day after the European Union implemented a ban on Russian oil on February 5. Kpler estimates that India’s imports of Russian oil could exceed 2 million barrels per day by April next year, representing 44% of India’s total oil imports, as reports suggest.
India emerging as a leading oil supplier
PM Modi has focused on bolstering relationships with European countries, positioning India as a dependable energy partner. This includes active participation in bilateral talks aimed at improving energy trade.
India has been able to purchase Russian crude oil at discounted rates, lower than $60 per barrel, especially following Western sanctions. This has provided Indian refiners with a competitive edge in sourcing raw materials.
“When the world was facing the challenge of fuels, your support helped us fulfil the petrol and diesel requirements of people in India. Not just this, the world should accept that India-Russia agreement regarding fuel played a big role in bringing stability to the international market.” PM Modi on addressing media in Moscow earlier this year.
India has notable refining capacity, enabling it to process large quantities of crude oil into refined products. By utilizing its extensive network of refineries, India can effectively transform lower-cost Russian oil into fuels that are in high demand in the European market.
India’s actions aligned perfectly with Europe’s pressing energy needs, enabling the country to take advantage of the increased demand and position itself as a important player in the refined fuel market.
India’s trade relations with European countries and lowered tariffs has made fuel refined in India likely more competitive in the markets around the globe.
