Mumbai: India’s petroleum product exports witnessed a marginal uptick in May, reflecting a modest recovery from the previous month’s decline.
Data from ship tracking intelligence firm Vortexa revealed that the country exported approximately 1.24 million barrels per day (bpd) of petroleum products during the month, marking a 3.3% increase compared to April’s figures of 1.20 million bpd. Following a notable drop of over 11% in April, India’s refined oil product exports displayed resilience, driven by increased demand. Despite the modest uptick, exports remained relatively stable compared to the same period last year, hovering around 1.25 million bpd. India’s prominence as a petroleum product supplier to European and Asian markets has grown, particularly in the aftermath of European countries’ boycott of Russian supplies following the Ukraine conflict. Notably, the country’s exports traverse the Red Sea, catering to diverse global demand.
However, despite the slight improvement in exports, India witnessed a decline in the overall export value of petroleum products in FY24, totaling $84.14 billion compared to $97.47 billion in FY23, as per government data. This trend occurs against the backdrop of increasing domestic consumption, notably driven by surging demand for diesel, aviation turbine fuel, and liquefied petroleum gas (LPG). India’s domestic production of petroleum products also exhibited growth in the initial months of the current fiscal year, rising by 4% to 23.4 million tonnes in April compared to the corresponding period last year.
Nevertheless, while exports marginally outpaced overall outward shipments, imports of petroleum products surged, leading to a decline in India’s self-sufficiency in oil products over the years. Data from the Petroleum Planning and Analysis Cell (PPAC) revealed a decline from 14.5% in 2011-12 to 12.2% in FY24. In April, India’s petroleum product imports surged by 34.4% to 4.3 million tonnes, valued at $2.1 billion, representing a 40% increase from the previous year. Conversely, exports grew by a modest 9% year-on-year to 4.8 million tonnes, amounting to $3.7 billion during the same period. Looking ahead, India’s demand for petroleum products, including jet fuel, diesel, and LPG, is anticipated to continue its upward trajectory, projected to reach 239 million tonnes in FY24-25, as per PPAC estimates, reflecting sustained economic growth and increasing consumption patterns.
