India's Petroleum Product Exports Decline 10% In June Amid Global Trade Shifts

New Delhi, Jun 30 (KNN) India's petroleum product exports fell nearly 10 per cent in June to 1.19 million barrels per day, down from 1.32 million barrels per day in May, according to data from global analytics provider Kpler. 

The decline also marked a 3.7 per cent decrease compared to the same period last year, when exports stood at 1.24 million barrels per day in June 2024.

The United Arab Emirates, Singapore, and Australia emerged as the primary destinations for India's petroleum product exports during the month. 

Exports to the UAE increased significantly to 115,944 barrels per day from 81,673 barrels per day in May, while shipments to Australia rose to 70,746 barrels per day from 50,500 barrels per day. 

Europe witnessed the most dramatic surge, with exports reaching 360,000 barrels per day, nearly doubling from May's 60,474 barrels per day. 

However, flows to Singapore declined by 42 per cent month-on-month, though the overall export portfolio maintained geographical diversification.

India has established itself as a major fuel supplier to European markets following the continent's boycott of Russian petroleum supplies after Russia's invasion of Ukraine. 

The country primarily serves markets across Europe and Asia, with Kpler projecting continued resilience in India's refined product exports in the near term.

The country anticipates more substantial increases in crude processing capacity toward late 2025 or early 2026, as several brownfield expansion projects at Koyali, Barauni, and Panipat refineries become operational. 

These developments are expected to further enhance India's refining capabilities and export potential.

Geopolitical challenges continue to impact India's petroleum trade. Traffic diversions from the Red Sea around the Cape of Good Hope due to regional tensions have added approximately ten days to Asia-Europe shipping routes while increasing fuel costs. 

Rising geopolitical tensions in West Asia pose additional threats to India's energy supplies, creating vulnerability to price fluctuations given the country's heavy dependence on crude oil imports and refined product exports.

(KNN Bureau)