Rubio Skips New Delhi for an Indian Port Town: Energy Diplomacy Amid a US Diesel Squeeze

Rubio Skips New Delhi for an Indian Port Town: Energy Diplomacy Amid a US Diesel Squeeze

A second India visit that bypassed the capital

US Secretary of State Marco Rubio visited India from October 17 to 22, his second official trip to the country this year. Rather than stopping in New Delhi, he traveled to Mumbai and then to Jamnagar, a port town in the western state of Gujarat. The State Department's itinerary listed Samarkand, Mumbai and Jamnagar, with no mention of India's capital.

An unlikely stop for a foreign leader

Jamnagar is not a usual destination for visiting leaders. It featured prominently because it hosts Reliance Industries' flagship refinery, described by the company as the world's "largest and most complex" single-site refinery, with crude processing capacity of 1.4 million barrels per day.

Record diesel prices with midterms looming

Rubio's trip coincided with a surge in US diesel prices. RT reported US retail diesel prices reached a record average of about $6.32 a gallon on Tuesday. Diesel affects American truckers, farmers and shippers, and the International Energy Agency has warned that constraints on the diesel market will likely keep prices elevated into next year. With midterm elections approaching, the Trump administration has been seeking ways to boost fuel availability.

The goal: more Venezuelan crude refined in India

Speaking to reporters a day earlier, Rubio called India a "refining superpower" and said the US wanted Reliance to process more Venezuelan oil. "They have the capability to refine heavy crude. They've done so in the past, and I think as more and more Venezuelan oil comes online, that's something they could do," he said. Reliance has emerged as the second-largest buyer of Venezuelan crude outside the US, even as Indian state-owned firms have largely stayed on the sidelines of Trump's appeal.

Reliance's export muscle and US footprint

Reliance's Jamnagar complex has considerable export-oriented refining capacity. A Reuters analysis from trade sources noted that Reliance exported 21.66 million tonnes of refined petroleum products from Jamnagar in the first half of 2025, with diesel the largest share at 9.81 million tonnes, followed by petrol at 6.14 million tonnes and jet fuel at 2.06 million tonnes. Reliance is also investing in a US refinery, and analysts say its ability to supply diesel puts Jamnagar on the map.

Oil geopolitics: Russia, Venezuela and sanctions

To ease diesel prices, President Trump earlier this month paused sanctions on Russia to allow supplies from Moscow into the global market. Rubio told a business forum in Mumbai that energy is tied to national security and that he would visit a company with tremendous refining capability. Analysts note Indian and Chinese refineries are adept at handling heavy and medium-heavy crude from Venezuela and Russia, grades better suited to producing diesel.

Washington eyes India's refining capacity as leverage

The visit signals Washington treating India's refining capacity as leverage to ease domestic fuel pressure and reshape crude sourcing. Key questions ahead include whether Reliance expands Venezuelan crude purchases, whether diesel supply arrangements with the US materialize, and whether prices ease before the midterms. Rubio framed the trip in security terms, underscoring that energy is national security.