New Delhi, Mar 31 (KNN) India’s petroleum product exports experienced a 3.7 percent growth in volume terms, reaching 59.0 million tonne (MT) during April–February of the current fiscal year, compared to 56.9 MT in the same period last fiscal, according to data released by the Petroleum Planning and Analysis Cell. 

This increase was primarily driven by higher shipments of motor spirit, petcoke, and fuel oil.

Despite the increase in export volumes, the value of these exports declined by nearly 7 percent to USD 40.4 billion in the first eleven months of the current fiscal year, down from USD 43.4 billion in the same period last year. 

This decline has been attributed to weaker global prices compared to the previous fiscal year.

In February alone, petroleum product exports rose by 6 percent year-on-year, reaching 5.6 MT, up from 5.3 MT in February 2024. 

However, in value terms, exports fell by 5 percent to USD 3.9 billion, reflecting the continued impact of lower global prices.

On the import front, refined oil product imports rose by 5.6 percent to 46.8 MT during April–February, up from 44.3 MT in the same period last year. 

The import bill for these products also increased by 3.8 percent to USD 21.9 billion, compared to USD 21.1 billion in the previous fiscal year.

India’s domestic petroleum product consumption in the first eleven months of the ongoing fiscal year rose to 218.3 MT, a 2.6 percent increase from 212.7 MT in the same period last year. 

This growth was fueled by higher demand for diesel, motor spirit, liquefied petroleum gas (LPG), and aviation turbine fuel (ATF).

Demand for ATF increased by 9.3 percent, while LPG and motor spirit grew by 5.5 percent and 7.4 percent respectively. 

Diesel consumption recorded a growth of 2.1 percent during April-February compared to last year. 

India projects domestic petroleum product demand to reach a record 252.9 MT in FY26.

Analysts warn of potential challenges in the global oil market starting in 2025, citing concerns over a supply glut, geopolitical uncertainties, and weak demand from major consumers, all of which could weigh on India’s export prospects.

The government’s economic survey highlighted that global energy markets remain vulnerable to disruptions due to escalating conflicts in West Asia and the Russia-Ukraine war. 

It warned that further escalation could lead to market repricing of sovereign risks in affected regions.

The survey also noted that rising geopolitical tensions have contributed to higher freight rates and disruptions in energy trade. 

It emphasised that 15 percent of global maritime trade passing through the Suez Canal has been impacted.

Recent disruptions in global shipping have increased goods prices and strained supply chains. 

While container freight rates normalised in 2023, the government observed a significant surge in 2024 due to stronger demand, shipping route disruptions in the Red Sea, and delays at the Panama Canal. 

These factors have kept inflationary pressures elevated.

(KNN Bureau)