Diesel, petrol export revenues dip 20% to USD 33 bn in 2023-24

India's exports of diesel and petrol fell by a fifth year-on-year to USD 33 billion in 2023-24 as international prices declined.

The combined export volumes of petrol and diesel, however, changed little in a year at 41.6 million metric tonnes in 2023-24, according to the oil ministry data.

Diesel generates the largest share of export revenues for Indian refiners. Diesel alone fetched USD 22 billion of the USD 48 billion earned by exports of refined fuels in 2023-24.

Diesel exports were down 24% year-on-year in value terms though its export volumes shrank barely 1% in 2023-24. The volume of petrol exports increased 2.5% but its value fell 13% to USD 11 billion in 2023-24.

Jet fuel, naphtha, fuel oil and other products accounted for the balance USD 15 billion of fuel exports in FY24.

Reliance Industries and Rosneft-backed Nayara Energy, the two private sector refiners in the country, mainly export diesel and petrol from India.

The beginning of the war in Ukraine in early 2022 and the Western sanctions on Russia dislocated the energy market, sending fuel prices sky-high. Refiners reaped record-high margins on petrol and diesel in 2022-23. This also boosted export earnings for Indian refiners.

However, after the market stabilised in 2023-24, the earnings normalised. International rates of petrol and diesel were down about 15-20% on average in 2023-24 from a year earlier. India exports diesel and petrol to various countries in Europe, Africa and elsewhere.

Lower prices have helped India pay less for imports of petroleum products. India paid USD 10.5 billion in 2023-24 for liquefied petroleum gas (LPG), 21% less than a year before. India imports 60% of the LPG it uses, primarily for cooking. LPG makes up about 45% of the price India pays for the import of all refined products.

The overall refined products' import bill shrank 13% on-year in 2023-24 to USD 23 billion.

India's consumption of oil has been rising at a rapid rate. The consumption of petrol rose 6.4% in 2023-24 while that of diesel grew 4.4%. LPG sales also grew 4%. The expanding economy, increased sales of vehicles and growing access to fuel have all been contributing to the fuel demand in the country.