India’s refined oil exports increased by 3.3 percent in May, following a significant drop in April.
India’s export of refined oil products showed a slight recovery in May after experiencing a notable decline in April. According to data from Vortexa, a ship tracking intelligence firm, the country exported 1.24 million barrels per day (bpd) of petroleum products last month, marking a 3.3 percent increase from April’s 1.20 million bpd. This figure remains almost unchanged from May of the previous year, which saw exports at 1.25 million bpd.
India, a key supplier of petroleum products to Europe and Asia, has become an essential fuel source for Europe following the continent’s boycott of Russian supplies due to the Ukraine conflict. However, exports to Europe might decrease in the coming months due to increased supply in Western markets. “More clean product exports are heading to Asia this month instead of Europe, as arbitrage to the West has narrowed,” noted Serena Huang, Vortexa’s Head of APAC Analysis.
Despite this modest uptick, India’s petroleum product exports fell by 14 percent to $84.14 billion in FY24 from $97.47 billion in FY23, driven by rising domestic consumption and a 6 percent growth in petroleum product consumption in April. Additionally, India’s production of petroleum products increased by 4 percent to 23.4 million tonnes in April compared to the previous year.
Imports of petroleum products also rose significantly by 34.4 percent in April, further contributing to a decline in the country’s self-sufficiency in oil products. Demand for petroleum products, including jet fuel, diesel, and LPG, is projected to grow to 239 million tonnes in the financial year 2024-25, up from 233 million tonnes last year.
