E-Paper
Dip in international oil prices hits Indian petroleum product exports
Poor realisation through exports of refined petroleum products has been a major drag for India’s overall export performance, an official said requesting anonymity.
Subdued international oil prices have depressed India’s per unit realisation of petroleum product exports that plunged over two-and-a-half times to $312.50 per tonne in the first half of 2024-25 from around $792 a tonne in H1 of 2023-24 despite a robust jump in volume-wise shipments, according to official data.
Poor realisation through exports of refined petroleum products has been a major drag for India’s overall export performance, an official said requesting anonymity.
“This is not because of the demand contraction as India’s petroleum product exports jumped significantly in volume terms during this period,” the official added.
While India’s export of petroleum products fell by over 12.7% to $36.4 billion in April-September 2024 as compared to $41.7 billion in April-September 2023, in term of volume, exports soared 121% during the period to 116.4 million tonnes as compared to 52.7 million tonnes in H1, FY24, according to commerce ministry data.
The trend is expected to continue in coming months also because of international oil price volatility due to continued geopolitical turbulences and expected new energy policy by the US, the world’s biggest oil consumer, another official said. “It is likely that the Trump administration would ramp up domestic crude oil output, which will keep global oil prices under check,” the official said, declining to be named.
As India has no control over pricing of petroleum products, it is focusing non-petroleum items to enhance its international shipments, the officials said. Non-petroleum goods export in H1 of FY25 was $176.68 billion as compared to $169.33 billion in H1 of FY24, posting 4.34% increase. However, after including petroleum products the annualised growth of total merchandise exports in the period (April-September 2024) dropped to 1.02% to $213.22 billion.
The value of non-petroleum exports in the month of October 2024 was $34.61 billion, a 25.63% jump as compared to $27.55 billion in October 2023. Cumulative India’s non-petroleum exports in April-October 2024 were valued at $211.34 billion, a 7.34% growth as against $196.88 billion in April-October 2023. But, the total merchandise exports (including petroleum products) in April-October 2024 saw only 3.18% year-on-year growth at $252.28 billion as compared to $244.51 billion in April-October 2023.
India, which imports more than 87% of crude oil it processes, does not consume the entire refined products. It exports several refined items such as various grades of petrol, diesel, aviation gasoline, petroleum jelly, waxes to various countries in Europe, Africa and Asia.
Highlighting robust growth in non-petroleum exports despite global headwinds, the official quoted in the first instance said: “If the trend continues, India may cross the $800 billion overall exports in FY25.” The country registered a record $776.68 billion overall (goods and services) exports in FY24.
