New Delhi, May 8 (KNN) India's exports of diesel and petrol witnessed a significant decline of 20 per cent year-on-year, amounting to USD 33 billion in the fiscal year 2023-24.

This drop in export revenues can be attributed to the stabilisation of international fuel prices after the market disruptions caused by the Russia-Ukraine war in early 2022.

Despite the decline in value, the combined export volumes of petrol and diesel remained relatively unchanged at 41.6 million metric tonnes during the same period, according to data from the oil ministry.

Diesel, which accounts for the largest share of export revenues for Indian refiners, fetched USD 22 billion out of the total USD 48 billion earned from refined fuel exports in 2023-24.

While the value of diesel exports fell by 24 per cent year-on-year, the export volumes decreased marginally by 1 per cent.

On the other hand, petrol exports saw a 2.5 per cent increase in volume, but a 13 per cent decline in value, totalling USD 11 billion in 2023-24.

Other refined products, including jet fuel, naphtha, and fuel oil, contributed the remaining USD 15 billion to India's fuel export earnings.

Reliance Industries and Rosneft-backed Nayara Energy, the two major private sector refiners in the country, are the primary exporters of diesel and petrol from India, catering to markets in Europe, Africa, and elsewhere.

The stabilisation of global fuel prices in 2023-24, with petrol and diesel rates averaging 15-20 per cent lower than the previous year, led to a normalisation of earnings for Indian refiners after the record-high margins achieved during the 2022-23 fiscal year.

Lower import costs for petroleum products, particularly liquefied petroleum gas (LPG), have provided relief to India's import bill. The country's LPG import bill decreased by 21 per cent to USD 10.5 billion in 2023-24, as India imports 60 per cent of its LPG consumption, primarily for cooking purposes.

Overall, India's refined products import bill shrank by 13 per cent year-on-year to USD 23 billion in 2023-24.

Domestically, India's fuel consumption continues to rise rapidly, driven by an expanding economy, increased vehicle sales, and growing access to fuel.

The consumption of petrol increased by 6.4 per cent, diesel by 4.4 per cent, and LPG sales grew by 4 per cent in 2023-24, reflecting the country's growing energy demands.

(KNN Bureau)