In a striking realignment of trade flows, Spain has emerged as a new major destination for India’s refined petroleum products. In September 2025, shipments to Spain soared from just US $1.1 million in the same month last year to roughly US $513.7 million—a year-on-year jump of ~46,000 %

Analysts attribute this surge to a combination of factors: strong demand for mid-distillates and aviation fuel in Iberia and southern Europe; competitive refining margins for Indian refiners; favourable freight economics; and an avoidance of traditional northern European distribution hubs such as the Netherlands (which saw a 36% decline in India-bound refined fuel shipments).

Geopolitical and regulatory context also play a decisive role: the European Union’s upcoming ban (from January next year) on imports of refined petroleum products derived from Russian crude—even if processed elsewhere—means end-markets like Spain are recalibrating supply sources. India, having built a large refining base and leveraging discounted Russian-origin crude (around 34% of its crude supply), is well-positioned to plug into these shifts.

For India’s oil-refining sector, this trade shift underscores two things: first, the emergence of Indian refiners as strategic global suppliers beyond domestic consumption; second, it opens new corridors for energy exports that bypass traditional intermediaries and tap direct end-market demand.

However, the wave also carries caution: growing dependence on downstream exports to Europe requires stable regulatory alignment, origin-tracking of crude, and adaptation to sanctions or supply-chain disruptions. As Europe transitions its energy sourcing, India’s role may expand—but so will the expectations and risks. In short, Spain’s surge marks not just a record figure, but a tectonic shift in how energy trade is being routed—reshaping India-Europe ties in fuel, refining and trade.