India diesel exports jump 20% in March amid Iran war

New Delhi: Record difference between the price of crude oil and refined diesel amid the Iran war pushed India to increase diesel exports 20% month-on-month in March, even as overall refined product exports fell 8%, according to shipping data.

India exported 12.90 million barrels of diesel during the March 1-28 period, up from 10.74 million barrels in February, showed data from ship tracking firm Kpler.

Export rule-breaking: A good many offences could soon see punishments reduced, “Higher diesel export volumes are likely supported by improved economics for middle distillate production. Geopolitical tensions in the West Asia have tightened middle distillate balances, with diesel and jet fuel cracks strengthening more than gasoline (petrol),” said Nikhil Dubey, senior research analyst at Kpler.

Refiners adjust their product slate to capture stronger crack spreads and margins. The crack spread is the difference between the price of crude oil and the specific products refined from it, while margin is the realised profit for refiners based on their costs and efficiency.

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