India's position
Despite a long coastline and heavy cargo throughput, India's bunker volumes are a fraction of Singapore's — much of the fuel for ships trading to India is still lifted at Colombo, Fujairah or Singapore. Government policy is now actively trying to close that gap through tax changes and port investment, aiming to keep more bunker demand onshore.
The tax that shapes everything: GST and duty
The defining feature of the Indian market is the split between two kinds of vessel:
GST on bunker fuel was cut to 5% (from 18%) for both coastal and foreign-going vessels in October 2017, to make Indian supply more competitive. Beyond GST, the bigger divide is customs duty: bunkers supplied to foreign-going vessels are treated as exports and are duty-free, while coastal and domestic-trade vessels take duty-paid fuel — which is why India has a distinct grade, HFHSD (High Flash High Speed Diesel), for coastal operations. Getting this classification right on every stem is central to bunkering in India.
The supplier landscape
Physical supply is dominated by the state oil marketing companies — IOCL, HPCL and BPCL — refining and distributing at the major ports, alongside private players such as Adani at their terminals. Grades available are the familiar VLSFO, LSMGO, HSFO and MGO for foreign-going ships, plus duty-paid HFHSD for coastal tonnage. Availability, lead time and paperwork vary port to port.
Where it's covered
Seven Ocean covers all 25 Indian ports — the 10 notified major ports (Mumbai, JNPT, Kandla, Paradip, Visakhapatnam, Kolkata, Chennai, Ennore, Tuticorin, Kochi) and 15 private and regional terminals — with the India-specific handling of GST, customs status and local supplier relationships that this market demands.
Where it's heading
The direction is toward growth: coastal shipping is being promoted, new deep-draft capacity such as the Vadhvan port is being built, and the government wants India to capture bunker demand that today leaks to neighbouring hubs. For buyers, the opportunity is real but the rules are particular — the tax and duty treatment has no exact parallel elsewhere, which is exactly where local expertise pays off.
Frequently Asked Questions
What is the GST on bunker fuel in India?
5%, for both coastal and foreign-going vessels, reduced from 18% in October 2017 to make Indian bunker supply more competitive.
What is the difference between foreign-going and coastal bunker supply?
Fuel to foreign-going vessels is treated as an export and supplied duty-free. Coastal and domestic-trade vessels take duty-paid fuel — in India, the distinct HFHSD grade — because that fuel is consumed within the country.
Who supplies bunkers in India?
Mainly the state oil marketing companies IOCL, HPCL and BPCL, plus private terminal operators such as Adani. Seven Ocean arranges supply across all 25 Indian ports.
Why do ships often bunker outside India?
Historically, price and availability sent demand to Colombo, Fujairah and Singapore. Tax cuts and port investment are aimed at keeping more of that demand in India.