India’s petroleum products’ exports surge 8% in July
Govt data showed India exported 2.4 million tonnes (MT) of diesel in July this year, up from 2.2 MT in the corresponding month last year, while total petroleum product exports rose from 5 MT to 5.5 MT. Diesel is currently commanding nearly 70% premium over crude, making exports lucrative for refiners despite the windfall gains tax govt brought in to ensure adequate domestic stocks.
India's petroleum exports saw an 8% increase in July due to improved margins and a global supply shortage. The country exported 2.4 million tonnes of diesel, up from 2.2 million tonnes in the same period last year, while total petroleum exports rose from 5 million tonnes to 5.5 million tonnes. Diesel is currently priced nearly 70% above crude, making it a lucrative export for refiners, even with a windfall tax imposed to ensure domestic stock.
Despite being the second-largest crude importer, India has shifted focus to fuel exports, supplying neighboring countries and South Asian, African, and European nations. Indian refiners import around 40-45% of their crude needs, but they also export significant amounts of refined products. Indian-origin cargo, including shipments from Nayara Energy, has been redirected towards Russia, where refinery capacity has plummeted due to drone attacks, causing the country to ban diesel exports and import.
The windfall tax has ensured refiners meet domestic demand before exporting surplus diesel, which now commands nearly 70% premium over crude.
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