New Delhi, Oct 3 (IANS) As the global diesel market faces the brunt due to the US-Iran war as well as the Russia-Ukraine conflict, India has said it will honour its commitments and continue diesel shipments even if the US moves forward with export bans.
According to Hardeep Singh Puri, Minister for Petroleum and Natural Gas, years of investment in refining capacity had left the industry well placed to sustain overseas supply.
Speaking at a recently held PAFI event, the minister said India ‘honours its commitments”.
In recent days, due to the West Asia crisis, industrial fuel has rallied much more than crude oil, hurting businesses, farmers and consumers, while fanning inflation.
India’s refining capacity today stands at around 267 MTPA.
“Within the next year, we are poised to reach nearly 290 MTPA, with a target of 320 MTPA by 2030–32,” said Puri at the event.
According to reports, as refining capacity is declining in several parts of the world, India is moving in the opposite direction building new refineries while simultaneously expanding and modernising existing ones.
“In the US, diesel prices went up to $6. If you look at a neighbouring country — just compare the rates. Look at the prices in 2014, 2021, and 2026. This isn’t just about political rhetoric. We have 107,000 retail outlets across the country; not a single one ran dry,” said the minister.
Meanwhile, US ban on diesel exports could push British inflation to nearly 5 per cent, economists have warned, after average pump prices topped 2 pounds per litre ($2.7) for the first time. Forecasters said a prolonged ban could push prices to 3 pounds and add as much as one percentage point to UK inflation, strengthening the case for Bank of England interest-rate hikes, according to multiple reports.
The warnings followed reports that Group of Seven countries (G7) plan to release up to 100 million barrels of diesel and oil over the next four months to ease market strains, sending European diesel and Brent crude futures lower.
–IANS
na/