New Delhi, April 1 India’s diesel exports to Southeast Asia rose to an over seven-year high in March, as demand for the fuel in the region and Australia surged amid the disruption in crude flows from the Middle East.
This has filled a crucial gap for Australia because the country is heavily dependent on imported fuel and gets most of its supply from Asia, not from domestic refineries.
Australia now meets less than 20 per cent of national fuel demand from its remaining refineries, while the rest is sourced through regional supply chains. In that setting, extra Indian diesel moving into Asia helps widen the pool Australia can buy from as buyers scramble for alternatives, according to an article in Australia Today.
According to a Reuters report, about 1 million metric tonnes of diesel moved from India to Southeast Asia and Australia in March, with around half headed for Singapore, and about 90 per cent of the trade shipped by Reliance Industries.
For Australia, the immediate issue is not just price but physical availability. The Anthony Albanese government has said Australia imports about 90 per cent of its fuel and has faced localised shortages, with several hundred service stations running out of petrol or diesel in recent weeks. Australia had about 30 days of diesel and jet fuel on hand late last week, while more than 53 fuel shipments are currently on their way to Australia from Asia, the United States, Mexico and elsewhere, the article pointed out.
Indian diesel is not a complete fix on its own, but it is helping ease the squeeze. Reuters reported traders expect the extra Indian cargoes to ease supply tightness into April, with some market analysts believing the arbitrage still favours east-of-Suez sales for months yet. That gives Australian buyers a better chance of finding replacement cargoes through Asian hubs.
In practical terms, that means diesel refined in India is becoming part of the regional buffer, helping keep Australian trucks, businesses and service stations supplied during a volatile period, the article said.
--IANS
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