Vietnam Receives First Direct Diesel Shipment From India In 8 Years

Vietnam has received its first direct diesel shipment from India in eight years, according to ship-tracking data and trade sources, after the country removed import duties on fuels earlier this year to expand its supply options.

About 70,000 metric tons of diesel were loaded onto the Panamax tanker Magic Victoria at Reliance Industries’ refinery in Jamnagar, India. The cargo was unloaded at Van Phong Terminal in Vietnam’s Khanh Hoa province between Aug. 14 and 16.

The shipment follows Vietnam’s decision to remove import taxes on all fuels in March as the country looked to expand its supply sources amid shipping risks in the Middle East.

It was not immediately clear who sold the cargo to Vietnam National Petroleum Group, or Petrolimex.

A Petrolimex spokesperson declined to comment, while Reliance did not immediately respond to a request for comment.

Earlier this year, diesel from India had reached Vietnam through ship-to-ship transfers carried out near the Singapore and Malacca straits, according to data from Kpler and Vortexa. The latest cargo is the first to travel directly from India to Vietnam in eight years.

Vietnam reduced its most-favoured-nation import duty on diesel from 7% to zero on March 9. The zero-duty policy has been extended until Sept. 30, 2026.

The change has allowed Vietnam to buy fuel from a range of suppliers. Analysts said the move has also created an opportunity for India to increase exports, as it supplies fuel to markets on both sides of the Suez Canal.

Indian diesel supplies have helped keep Asian cash premiums for 10-ppm gasoil at $5 to $6 per barrel despite concerns about tighter supplies in markets west of Suez, according to trade sources.

Vietnam imported most of its diesel last year from South Korea and other Southeast Asian countries, according to LSEG and Kpler ship-tracking data.

However, one trade source said it remains more profitable for Indian diesel cargoes to move to markets west of Suez than to Southeast Asia.

Magic Victoria (IMO 9608867) is a Marshall Islands-flagged oil tanker. MOL (India) Private Limited is the vessel’s registered owner, while Synergy Maritime Private Limited manages the ship.

Reliance Industries’ Jamnagar refining complex has a crude-processing capacity of 1.4 million barrels per day.

Petrolimex holds an 85% stake in Van Phong Terminal, which has storage capacity of 505,000 cubic meters and can handle up to 6 million tonnes of imports and exports annually.

References: hydrocarbonprocessing, portnews