India’s petroleum products (POL) exports rose 8% mom and 15% yoy in July 2023, the highest level so far in FY2024, driven by higher diesel exports.
India exported 5.4 million tonnes (MT) of POL in July, according to the Petroleum Planning and Analysis Cell (PPAC). Diesel exports accounted for more than 44% of total refined oil exports that month.
High-speed diesel (HSD) exports rose 22% month-on-month and 9% year-on-year to 2.38t last month, the second-highest export volume in calendar year (CY) 2023 after March (2.48t).
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An oil marketing company (OMC) official said that lower demand during the monsoon months has led to more capacity being used to meet exports and demand from Southeast Asia and northwestern Europe. Most of the growth came from diesel.
ICRA Senior Vice President and Co-Head (Corporate Ratings) Prashant Vasisht also noted that exports rose in July due to a surge in HSD exports.
“HSD production fell due to OPEC+ cuts in crude oil production, leading to higher light crude oil processing, resulting in lower HSD production. Another reason for the surge in HSD exports was the EU embargo on Russian HSD, resulting in reduced supply,” he added.
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During the April-July period of FY2024, POL exports fell by more than 6% year-on-year to around 20 tons. In value terms, the decline was even steeper over the same period, 39% to $14.4 billion.
At the start of the fiscal year, POL exports fell from a high of 6.06 tonnes in March 2023 to 4.37 tonnes in April. Outbound shipments rose to 5.31 tons in May before falling back to 5.01 tons a month later. In FY23, except for March, exports were between 4-5.7 tonnes.
Diesel exports in FY2024 follow a similar trajectory. Shipments of 2.5 tons in March 2023 fell to 1.91 tons in April before rising to 2.4 tons a month later. It fell again to 1.95 tons in June.
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In addition to diesel, exports of gasoline, ATF and fuel oil also increased.
In July 2023, gasoline or car alcohol (MS) increased by 2.4% year-on-year to 1.26 tons. So far this fiscal year, gasoline exports have largely been in the range of 1.23-1.26 tonnes.
Exports of aviation turbine fuel (ATF) rose 9% year-on-year to 782,000 tonnes in July. This is the fourth consecutive month of growth in overseas jet fuel shipments.
Exports of fuel oil, also known as heating oil, rose 4% year-on-year to 142,000 tonnes in July, marking the fourth consecutive month of growth in outbound cargo in fiscal 2024.