New Delhi, April 2: India’s diesel exports to Southeast Asia surged to their highest level in over seven years in March. This increase is driven by rising fuel demand in the region and Australia, largely due to disruptions in crude oil supply from the Middle East.
Australia is significantly reliant on imported fuel, sourcing most of its supply from Asia. Currently, the country meets less than 20% of its fuel demand from its remaining refineries, with the rest supplied through regional supply chains.
According to an article in ‘Australia Today’, the additional diesel from India is expanding the range of supply options for Australia, as buyers actively seek alternatives.
Reports from Reuters indicate that nearly one million metric tons of diesel were shipped from India to Southeast Asia and Australia in March. Approximately half of this volume was destined for Singapore, with around 90% of the trade handled by Reliance Industries.
For Australia, the immediate concern is not just pricing but also the physical availability of fuel. The Anthony Albanese government has stated that Australia imports about 90% of its fuel and is currently facing local supply shortages. Many petrol stations have run out of petrol or diesel in recent weeks.
The article notes that at the end of last week, Australia had about 30 days’ worth of diesel and jet fuel, while over 53 fuel shipments from Asia, the United States, Mexico, and other locations are en route to Australia.
While Indian diesel alone cannot solve the entire problem, it is helping to alleviate supply constraints. Traders expect that additional Indian shipments will ease shortages in April, and some market analysts believe that profits for East-of-Suez sales will remain favorable for months. This provides Australian buyers with better opportunities to source fuel through Asian hubs.
Practically, this means that refined diesel from India is becoming part of the regional reserves, ensuring a steady supply for Australian trucks, businesses, and petrol stations during this volatile period.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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