India’s sputtering economy is turning the energy-hungry nation into an unlikely source of diesel exports.
The industrial fuel is the lifeblood of Indian manufacturing, transport and agriculture, making it the country’s most-consumed petroleum product. But five straight quarters of slowing growth is taking an increasing toll on demand, resulting in diesel consumption slumping to the lowest since the start of 2017.
The sharp slowdown – economic growth has almost halved since the middle of 2016 — was compounded by a heavier-than-normal monsoon in some areas, taking refiners by surprise. This forced them to cut operating rates and spurred a 47% jump in exports of diesel, also known as gasoil, to a record 3.5 million tons last month.
