Reliance Expands Diesel Exports to European and Brazilian Markets in July

India's Reliance Industries significantly increased its diesel exports to Europe and Brazil in July, according to ship-tracking data and industry sources. The additional shipments are expected to help ease the global diesel supply crunch, which has been intensified by the US-Iran conflict and Russia's temporary ban on diesel exports. The rise in exports comes as diesel prices in Europe surged sharply. European refining margins reached a record $74 per barrel, driven by the region's lowest diesel inventories since 2014 and disruptions to fuel supplies from the Gulf due to escalating tensions in West Asia.

Industry data from Kpler and Vortexa, along with trade sources, indicate that Reliance loaded between 4 million and 5 million barrels of diesel from its Jamnagar refinery for European destinations during July. This marks the highest monthly export volume in nearly ten months and represents a return to levels seen before the US-Iran conflict disrupted global energy markets. Reliance Industries did not comment on the reported increase in exports.

Another major factor supporting India's exports is Russia's suspension of most diesel exports during July after Ukrainian drone attacks damaged several refineries. Reports suggest Moscow is likely to extend the export restrictions into August. As the world's second-largest crude oil importer, India has increasingly positioned itself as a key supplier of refined petroleum products to both eastern and western markets. Kpler data shows the country recorded its highest diesel export volumes in three years during 2025, reinforcing its growing role in balancing global fuel supply.

Energy consultancy Energy Aspects estimates that Europe could face a shortage of around 833,000 barrels per day of middle distillates—including diesel and jet fuel—during the third quarter of the year, keeping demand for imports elevated. Market data from LSEG also highlights changing trade dynamics. The price gap between European gasoil futures and Asian diesel swaps widened significantly over the past two trading sessions, reaching discounts of nearly $140 per tonne, compared with around $80 per tonne for most of July.

Analysts caution that export flows to Europe may not remain as strong in August. James Noel-Beswick, Head of Commodities at Sparta Commodities, noted that Europe will need to offer more competitive prices than Asian buyers if it wants to continue attracting cargoes from India. He added that, despite the wider price differential, shipping economics in early August appear more favorable for sending diesel from India's west coast to Asian markets rather than Europe when using Long Range 2 (LR2) tankers capable of carrying around 750,000 barrels of fuel.

Current shipping rates show that chartering an LR2 tanker to transport refined fuels from western India to Europe costs slightly over $5 million, or roughly $55 per tonne. Diesel refining margins in Asia have climbed to a four-month high of $77 per barrel, supported by tighter global supplies and stronger demand outside the region.

India's diesel exports to Brazil are also expected to reach their highest level in 11 months, with shipments estimated at 2.8 million barrels. Most of these cargoes are scheduled to be loaded from Reliance's Jamnagar and Vadinar refineries. At the same time, Russia's diesel exports to Brazil have fallen to their lowest level in nearly four years, creating additional opportunities for Indian refiners to expand their presence in the South American market.