India Diesel Exports Set To Surge In 2027 As Refiners Add 15 Million Tonnes Of Capacity

India is preparing to increase diesel exports significantly in 2027 as state-owned oil companies expand refining operations to meet growing international demand amid global fuel shortages, as per a report by Bloomberg.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Tuesday that public sector refiners would add at least 15 million tonnes of annual diesel production capacity through refinery expansions and new facilities.

Speaking at an event in Goa, Puri said India was strengthening its position as a major global supplier of refined petroleum products.

"We'll be in the happy situation of not only refining for ourselves but for the world," he said.

India Emerges As World's Second-Largest Diesel Exporter

Disruptions caused by conflicts in West Asia and Ukraine have tightened international crude oil and fuel supplies, pushing prices higher.

Diesel markets have faced additional pressure since Russia suspended exports in July following attacks on its energy infrastructure.

The resulting shortages have affected major consuming markets, including the US and Europe.

According to energy analytics firm Kpler, India overtook Russia in 2026 to become the world's second-largest diesel exporter.

Indian Oil Corporation expects to increase annual diesel production by up to nine million tonnes from 2027.

As per the report, chairman Arvinder Singh Sahney said expansions across three refineries would add more than 17 million tonnes of crude-processing capacity.

Hindustan Petroleum Corporation's Rajasthan refinery is expected to contribute approximately four million tonnes of additional diesel annually once fully operational.

Numaligarh Refinery, an Oil India subsidiary, plans to increase diesel production to around three million tonnes.

Bharat Petroleum Corporation expects another 1.5 million tonnes of annual output from 2028.

During the first half of the financial year beginning April 2026, Indian refiners produced 59 million tonnes of diesel against domestic consumption of approximately 46 million tonnes.

Puri said India's total refining capacity would increase from around 267 million tonnes annually to 300 million tonnes, with a longer-term target of 400 million tonnes.