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From Refinery to Reykjavik: The Supply Chain Logic

The journey of Indian jet fuel to Iceland is a study in coastal refining economics. Major hubs are found in Jamnagar and Vadinar (Gujarat), Mumbai (Maharashtra), Kochi (Kerala) and Paradip (Odisha), all positioned on India's western coastline where imported crude arrives by tanker. Refineries crack crude into kerosene-based jet fuel—classified as JET A-1 under international aviation standards—and load product tankers bound for export terminals. From Jamnagar, a modern product tanker requires approximately 30-35 days transit to Reykjavik, navigating around the Cape of Good Hope and across the Atlantic.

N1 is the leading supplier of aviation fuel in the Icelandic market, providing full service at both Keflavik International Airport and Reykjavik Domestic Airport. This concentration of supply-side distribution means that Indian exporters are selling into a concentrated, sophisticated buyer base—not competing on commodity margins alone, but on reliability, specification compliance, and the ability to absorb periodic disruption.

The broader competitive context matters. Exports of diesel, jet fuel and gasoline to Europe reached 229,000 barrels per day in recent months, with European buyers now representing a critical outlet for Indian refinery capacity. Iceland, as a smaller entrepôt, receives a modestly sized allocation within that larger European strategy—but a strategically important one.

Employment and Livelihoods: How Jet Fuel Exports Support Indian Workers and Communities

The roughly 856,000 workers employed across India's coke and refined petroleum sector collectively power this trade. Panipat Refinery provides significant employment and boosts Haryana's industrial sector, with the facility alone supporting thousands of direct jobs and a multiplier effect across local supply chains. Similarly, the Jamnagar refining and petrochemical hub has turned India into a major exporter of petroleum products, with the complex and its satellite operations employing tens of thousands directly and supporting many more indirectly through logistics, engineering, and procurement.

Using the sector multiplier data available, the petroleum refining industry generates approximately 5 direct jobs per 100,000 tonnes of output and 10 indirect jobs per 100,000 tonnes across transportation, warehousing, and supply-chain services. With Iceland-bound jet fuel shipments routinely exceeding 30 million metric tonnes over multi-year periods, the employment footprint of this single trade corridor reaches into the low thousands—direct refinery operators, product tanker crews, port workers at Jamnagar and Vadinar, and logistics professionals coordinating trans-oceanic flows.

Women comprise approximately 25% of the petroleum sector workforce, a figure that has expanded as refineries invest in technical training and regulatory compliance roles. Small and medium enterprises (MSMEs) account for roughly 70% of supplier relationships in India's refining supply chain—fabrication shops, maintenance contractors, and specialized logistics vendors concentrated in industrial clusters around Jamnagar district and the Panipat industrial zone in Haryana. These clusters have become magnets for ancillary industries: pipe bending facilities, valve manufacturers, and transportation brokers who collectively benefit from the volume and regularity of export shipments.

What the Trajectory Suggests Under TEPA

In 2024-25, trade between India and Iceland stood at USD 77.06 million, with Indian exports at USD 66.01 million, with petroleum products comprising a significant portion. Under the agreement, EFTA countries have committed to promote USD 100 billion in investment in India over 15 years, with the potential to generate one million direct jobs.

The near-term outlook suggests consolidation rather than further explosive growth. The 2022 peak of $109.9 million reflected a unique confluence of Russian sanctions, European refinery outages, and arbitrage-window openings that may not fully repeat. Yet the establishment of reliable supply relationships, the absence of tariff surprises post-TEPA implementation, and Iceland's stable demand for heating fuel and aviation fuel position India's refiners to maintain consistent market share—no longer a marginal footnote, but a recognized and dependable source.

For workers and communities anchored to Gujarat's refining corridor and Haryana's petrochemical zone, this represents durable economic opportunity. A single multi-year contract to supply Icelandic airports and heating-fuel distributors translates into sustained refinery utilization, planned maintenance schedules, and predictable employment for operators, engineers, and the supply-chain professionals who orchestrate every shipment across the Atlantic.