India’s refined fuel exports hit a record high in 2025 amid Western sanctions on Russian oil imports and Red Sea disruptions, solidifying India’s position as a critical global midstream hub for crude suppliers, including Gulf firms.

Fuel shipments rose to 1.28 mn barrels per day (bpd), up 4% y-o-y, making up a tenth of India’s merchandise exports by value, Business Standard reports, citing Kpler data. Exports in value terms reached USD 52 bn in January-November with India’s growing role as a swing supplier to Asia and Europe.

What’s changed? While India’s overall export volumes are up, Saudi Arabia and Iraq have halted crude supplies to Rosneft-backed Nayara Energy — once a top-tier customer — following EU sanctions on its Russian backers.

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Reliance leads, state refiner climbs: Reliance Industries dominated with exports of 911k bpd, or 71% of the total, while state-run Mangalore Refinery and Petrochemicals overtook Nayara Energy to become the second-largest exporter. Nayara’s exports fell 15% following EU sanctions, reshaping flows from the Gulf and Europe.

Why this matters: This has turned Nayara into a Russian-fed island, while its competitors, Reliance and MRPL, capture the lucrative European arbitrage. For Egypt, the data proves the Suez Canal remains the indispensable artery for refined products; high-margin fuels are transiting the informal blockade far more successfully than crude.

What’s next: As Indian state refiners add 380k bpd of new capacity this year, they are moving directly into the refined product space that Saudi Aramco and ADNOC intend to feedstock.

More capacity, export bias: New and expanded refineries will lift supply in diesel and jet fuel, reinforcing exports as India balances domestic demand with global arbitrage.

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