NEW DELHI: India’s export of petroleum products in December increased by 3.1% to 1.37 million barrels per day against 1.33 million barrels per day in the corresponding period of last fiscal 2023-24, as per data from energy cargo tracking firm Vortexa. The exports also increased by 4.5% from 1.31 million barrels per day in the previous month.
Africa emerged as the top destination for the country’s exports in December, while supplies to the traditional importers – Asia and Europe declined significantly.
“As the diesel arbitrage from Asia to Europe remains closed, product exports to Europe are lacklustre in December,” said Xavier Tang, market analyst at Vortexa.
India exported 349,736 barrels per day of petroleum products to Asia last month, down 33% from 523,052 barrels per day in November. Exports to Europe declined by 7% to 33,121 barrels per day, the lowest in over four years.
“However, there has been an increase in product exports towards the Middle East, likely due to increased refinery maintenance in the Middle East region,” Tang said.
India primarily supplies petroleum products to countries in Europe and Asia. The country has emerged as a major fuel supplier to Europe in the past few months after European countries started boycotting Russian supplies post its invasion of Ukraine.
The exports to the Middle East increased by 52% in December at 278,155 barrels per day compared to the previous month.
Union minister for petroleum and natural gas Hardeep Singh Puri on multiple events has said that there is no shortage of oil in the market but if there are geopolitical tensions, it may increase the cost of freight for shippers.
The country exports a variety of goods via the Red Sea including petroleum products. However, the traffic diversion from the Red Sea and around the Cape of Good Hope owing to geopolitical tensions over the region has added ten days to Asia-Europe journeys while also increasing fuel costs, the government had earlier said.
Meanwhile the domestic consumption of petroleum products during April to November increased to 157.5 million tonnes from 152.4 million tonnes in the same period in FY24, as per data from Petroleum Planning and Analysis Cell. The growth is majorly driven by growth in demand for diesel, aviation turbine fuel, and liquified petroleum gas.
The country’s demand for petroleum products including jet fuel, diesel, LPG among others is likely to grow to 239 million tonnes in the financial year 2024-25, as per estimates by the Petroleum Planning and Analysis Cell. The country’s consumption of petroleum products stood at 233 million tonnes last year.
Source: The Financial Express
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