US considers ban on diesel exports: India boosts supplies as Russian supply falters Can he keep it up? | Today’s news

The U.S. is considering a 90-day ban on diesel exports as the Trump administration faces pressure to lower fuel prices ahead of November’s midterm elections, Politico reported.

The proposal has sparked divisions within the administration and opposition from the U.S. fuel industry, which has warned that curbing exports could offer only temporary relief while tightening supplies and later pushing prices higher, the report said.

India, meanwhile, has indicated it has no plans to cut diesel exports even as global fuel markets remain tight.

“We are honoring our commitments,” Petroleum Minister Hardeep Puri said, referring to existing diesel export contracts, according to Bloomberg.

Puri said India has strengthened its refining capacity and is better positioned to deal with market disruptions.

Why India is exporting more diesel

India has become an increasingly important supplier in the world diesel market.

Kpler data cited by Bloomberg showed that India accounted for about 10% of global diesel shipments this year, making it the world’s second-largest marine diesel exporter, ahead of Russia.

This trend has been fueled by India’s large refining base and its ability to divert fuel to markets offering better margins.

In July, India’s refined fuel exports reached 1.53 million bpd, 27% above the 12-month average and the highest July level since Kpler records began in 2017, Reuters reported, citing Kpler. Strong diesel margins, Russian export restrictions and increased refinery activity helped fuel the increase.

Read also | Oil prices are steady as Russia announced the easing of a ban on fuel exports

Who buys Indian diesel?

India’s export destinations have shifted according to regional shortfalls and price signals.

Brazil: India was on track to send 2.8 million barrels of diesel to Brazil in July, an 11-month high, according to Reuters.

Africa: Asian diesel exports to Africa, including shipments from India, hit a 4-year high in August 2026 as African buyers looked for alternative supplies following a cut in exports to the Middle East, Reuters reported.

Southeast Asia: India’s diesel exports to Southeast Asia hit a seven-year high in March 2026, driven by higher regional refining profits and supply disruptions related to the Iran conflict, according to Reuters data.

Turkey: Turkey has also increasingly turned to Indian supplies as Russian supplies have been cut off. Turkish diesel imports from India rose to a record high of more than 120,000 barrels per day in August 2026, according to Kpler shipping data cited by Reuters.

Europe: Reliance Industries’ July shipments to Europe rose as the continent faced depleted stocks and supply disruptions from Russia and the Middle East. European diesel margins hit a record $74 a barrel as inventories fell to their lowest level since 2014, Reuters reported.

Why Russia’s diesel ban matters

India’s role has become more significant as another major diesel supplier has faced repeated export restrictions.

Russia banned diesel exports for most of July after Ukrainian drone strikes damaged oil refineries and caused domestic fuel shortages.

The outage removed a major source of diesel from international markets and prompted more buyers to turn to alternative suppliers.

Historically, Russia, the world’s second-largest exporter of diesel by sea, has at times been forced to halt international supplies to protect its domestic market.

The latest Reuters analysis shows global diesel markets remain under pressure due to outages in Russia and wider West Asia.

Can India sustain higher diesel exports?

India has the refining capacity to remain an important supplier, but sustaining exceptionally high export volumes is not just a question of sufficient oil or refinery capacity.

Reuters reported in July that the economics of shipping were already changing. While European demand was strong, Asia also offered attractive diesel margins.

A large cargo from India’s west coast to Europe can cost more than $5 million, or about $55 a tonne, making the deal viable only if European buyers offer a sufficient premium, the report said.

This means Indian refiners can divert cargo between Europe, Africa and Asia depending on price spreads, transport costs and regional shortages.

There is another constraint: global demand for diesel is being met against a backdrop of limited spare refining capacity. Reuters reported that refineries around the world were operating at or near full capacity while diesel inventories remained unusually low.

Analysts cited in the report expect the global shortage to persist until 2027.

So India can continue to supply diesel to overseas markets, but sustaining unusually high export volumes could be difficult in the long run. The deciding factor is where Indian refiners can get the best returns.