India will continue exporting diesel as planned even if Washington moves ahead with a ban on overseas fuel sales, with the country's expanding refining capacity positioning it to serve both domestic and global demand.
Oil Minister Hardeep Puri, speaking at the PAFI 13th Annual Forum in New Delhi on Thursday, said India would not walk back its export commitments.
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"We honor our commitments," Puri said, adding that years of investment in refining capacity had left the industry well placed to sustain overseas supply.
Global diesel market under strain
The global diesel market has tightened this year under the combined weight of the US-Iran conflict in West Asia and the Russia-Ukraine war, with Moscow curbing most of its overseas diesel sales. Diesel prices have climbed sharper than crude, squeezing truckers, farmers and construction firms and adding to inflationary pressure.
US pump prices have hit record highs, prompting speculation that Washington could restrict diesel exports to hold more supply at home. President Donald Trump said this week he had asked his team to look into a shipment restriction, and the proposal is now before his economic advisers.
