Bunkering in India costs far more than in Singapore, and not only for the fuel

For a ship choosing where to bunker, the fuel price is only part of the bill. A study by DNV for the IMO GreenVoyage2050 program compared what it costs to refuel at Indian ports and in Singapore, and the gap goes well beyond the price per tonne.

Two ports, two very different bills

According to the study, heavy fuel oil (HFO) runs at around $545 a tonne at Indian ports against $353 in Singapore. Port fees add a second gap: around $9,500 to $10,500 per call in India against $700 to $900 in Singapore. India also applies a 5% goods and services tax.

The volumes show the result. Singapore sold 54.92 million tonnes of bunker fuel in 2024, while India sold about 2.25 million tonnes.

What clean fuels would need to compete

The same logic applies to the alternative fuels that India hopes to produce. The study finds that India would need bio-methanol about 5.5% cheaper than the competing hub, at $30 per gigajoule against $32, and e-ammonia about 7% cheaper, at $51 per gigajoule against $55.

For fuel developers, this is the number that decides demand. A ship does not compare production costs. It compares the delivered cost at the vessel, including fuel, fees and taxes, and it bunkers where that total is lowest.

Why it matters beyond India

The finding is a reminder that clean fuel projects are judged on the full delivered price, not only on what it costs to make the fuel. Port charges, taxes and the scale of an existing bunkering hub can outweigh a production advantage.

For cargo owners, the emissions from the fuel burned on their voyages sit in their Scope 3, or value-chain, emissions. When verified lower-emission fuel is supplied, credits are issued to the project developer after independent verification, and Carbon3 records them once in its registry as inset credits. That gives cargo owners a traceable claim to the reduction, whichever port the fuel was delivered in. This is insetting, not offsetting, and the difference is explained at carbon3.net/insets-vs-offsets.

Claim treatment depends on the applicable reporting framework.

The open question is what it would take for an Indian port to win clean fuel business from an established hub.

Source: IMO GreenVoyage2050 / DNV, Study on potential demand and pricing of alternative marine fuels in India (Rev.03, July 2026).