How to Make Money in Diesel
Europe currently imports about 15% of its diesel, but imports could more than double to 67 million tons a year according to a report from Purvin & Gertz Inc. Russia supplies the majority of Europe's imported diesel, but this could change in the future. The appetite for diesel is growing in China, India, and other countries. Diesel used to be cheaper than gasoline in Europe because gas is taxed more heavily. This encouraged car manufacturers to make more diesel-based vehicles. Vehicles using diesel account for 70% of new cars in countries like France and Belgium. With the focus on using more diesel, there has not been an increase in the fuel's production in Europe. Short-term relief may come from new refining capacity from Reliance Petroleum Ltd.'s new refinery in Jamnagar India, which will begin operation in a few months--40% of its output will be diesel. European refinery capacity will not be enough to handle additional capacity, hence, more diesel must be imported, which helps companies like Reliance Petroleum Ltd, which may be the place to invest in. Source.
