India steps up fuel imports amid rising prices

India, Asia's leading gasoline and diesel exporter, has had to step up imports of fuels due to the fact that there has been a lot of anomalies in 2022 as flows are rerouted and prices jump.

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In the first half of July, the gasoline imports are expected to rise to around 37,000 barrels a day, an eight month high, according to preliminary data from Vortexa Ltd. Diesel imports are expected to surge to the highest since February 2020, at about 69,000 barrels a day in the period. Indian Oil Corp. and Bharat Petroleum Corp. recently sought to buy diesel for delivery in June and July.

After the invasion of Ukraine, India has emerged as a top buyer of Russian crude, and its refiners go all out to make fuels. India s private refiners have been prompted to increase exports, creating a shortage that state processors are rushing to address with more imports.

China, which is also a key supplier of diesel and gasoline, is cutting back on the back of heightened import activity from India, shrinking Asia's pool of fuel supplies. According to industry consultant OilChem, planned fuel volumes from China have been reduced for July due to refinery maintenance this month.

India's rush to buy gasoline and diesel fuels has already caused a surge in regional refining margins for both fuels, according to industry consultancy FGE, which said there have been fuel shortages in the states of Tamil Nadu and Gujarat. In a note from FGE, the country is expected to keep importing more fuel in the coming months.

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