HomeEnergyUS Falls Behind As India Emerges as Europe's Fuel Pump

US Falls Behind As India Emerges as Europe’s Fuel Pump

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Since the European Union prohibited imports of oil and oil products from Russia, India has supplanted the United States as the primary petrol station in Europe. The nation has emerged as the primary provider of oil products through processing Russian oil. Escalating exponentially, India’s annual shipments to the European Union generate tens of billions of dollars in revenue.

The European Union prohibited the shipment of Russian oil by tanker on December 5, 2022, and oil products on February 5, 2023. The United States compensated Europe with its raw materials for substantial volumes of lost oil. According to a weekly report by ship broker Banchero Costa that cites Refinitiv, crude oil shipments across the ocean from the United States increased by 21 million tonnes in 2023, surpassing those of any other exporting nation.

Concerning oil products, India has emerged as the primary supplier, exporting goods derived from Russian oil to the European Union. Data from the Energy Information Administration (EIA) of the United States Department of Energy and the Indian Ministry of Trade and Industry support this conclusion.

India had previously supplied crude products to Europe, but its exports have increased dramatically since 2022. The Netherlands, a major European fuel market and an international centre, experienced the highest increase. In 2023, total shipments nearly tripled from 2.6 million tonnes of diesel fuel and 3.8 million tonnes of aviation petroleum sold by Indian refineries to domestic companies in 2021 to 11.1 million tonnes of diesel and 6.6 million tonnes of aviation fuel. The diesel fuel shortfall of 8.5 million tonnes represents over one-third of the volumes Russia previously exported to Europe.

The Ministry of Commerce and Industry of India reports that fuel sales to Europe by Indian companies experienced a substantial increase in revenue, nearly tripling to $14.8 billion by 2023.

The rise in shipments from India outpaced all volumes from that side of the Atlantic and outpaced the growth in exports from the US by a large margin. According to the EIA, the United States has been exporting more oil products to the Netherlands, Belgium, and Sweden since 2022. Although their increase from 2021 to 2023 was about half that of India (5.6 million tonnes), they still reached 16.5 million tonnes.

As the US Department of Energy publishes results for only 11 months, the figures may increase, but they will keep the overall picture the same.

Since the information management of the US Department of Energy only releases findings for 11 months, a rise in the numbers won’t necessarily alter the overall picture.

While American shipments of oil products climbed somewhat from 4.2 million tonnes in 2021 to 4.6 million tonnes in 2023, India has been supplying its oil products to Europe and the United Kingdom. Exports of aviation paraffin have increased significantly, according to data from the Indian Ministry. Shipments to the UK increased to 1.35 million tonnes in 2023, a sixfold increase that cost British businesses $1.12 billion.

It is no secret to EU officials that India has turned into Europe’s petrol station, selling oil products derived from Russian oil. Josep Borrell, the High Representative of the European Union for Foreign Affairs and Security Policy, demanded that India stop reselling refined Russian oil to Europe as early as May 2023. European law does not, however, forbid such a plan. After that, Brussels made no more noise about wanting to put restrictions on buying Indian oil products.

In December, 1.7 million tonnes of diesel derived from Russian oil were delivered from India to Europe despite the Houthi strikes and the Red Sea crisis, and after April, this month ranked as 2023’s second-highest export to the EU.

Frontier India News Network
Frontier India News Networkhttps://frontierindia.com/briefs
Frontier India News Network is the in-house news collection and distribution agency.

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