Daijiworld Media Network - New Delhi
New Delhi, Oct 3: India will honour its diesel export commitments and continue overseas shipments even if the US moves ahead with a ban on diesel exports, Petroleum and Natural Gas Minister Hardeep Singh Puri has said, as the global diesel market faces pressure from the US-Iran war and the Russia-Ukraine conflict.
Speaking at a recently held PAFI event, Puri said years of investment in India's refining capacity had positioned the country's oil industry to sustain overseas supplies.
The minister said India “honours its commitments”.
In recent days, the West Asia crisis has pushed industrial fuel prices sharply higher than crude oil prices, putting pressure on businesses, farmers and consumers while adding to inflationary pressures.
India's refining capacity currently stands at around 267 million tonnes per annum (MTPA).
“Within the next year, we are poised to reach nearly 290 MTPA, with a target of 320 MTPA by 2030–32,” Puri said.
While refining capacity is declining in several parts of the world, India is moving in the opposite direction by building new refineries and simultaneously expanding and modernising existing facilities, according to reports.
“In the US, diesel prices went up to $6. If you look at a neighbouring country — just compare the rates. Look at the prices in 2014, 2021, and 2026. This isn’t just about political rhetoric. We have 107,000 retail outlets across the country; not a single one ran dry,” the minister said.
Meanwhile, economists have warned that a US ban on diesel exports could push inflation in Britain to nearly 5 per cent after average pump prices crossed £2 per litre ($2.7) for the first time.
Forecasters said a prolonged export ban could push prices to £3 per litre and add as much as one percentage point to UK inflation, potentially strengthening the case for Bank of England interest-rate hikes, according to multiple reports.
The warnings came amid reports that Group of Seven (G7) countries plan to release up to 100 million barrels of diesel and oil over the next four months to ease pressure in energy markets.
The proposed release has already contributed to lower European diesel and Brent crude futures, according to reports.