India, with its established refining capacity, geographical location, and trading policies, has proven itself to be a global player as a petroleum products exporter. New energy realities are emerging globally with greater demand, and India is well-positioned to export refined petroleum products. This article will review the range of petroleum products exported by India, nations importing them, as well as new trends developing in this important commodity.
The Backbone: India’s Refining Capacity
India has considerable refining capacity within Asia (250 million tonnes per annum; 23 refineries), providing Indian refiners the capability to continue to process extremely large amounts of crude petroleum, primarily from Russia, Iraq, and Saudi Arabia, into good-quality petroleum products for domestic use and for export.
List of Petroleum Products Exported from India
India’s export of petroleum products includes a rich and varied assortment, thus displaying the adaptability of its refineries and the variability arising from global demand. Below is a detailed list of the key products that India exports:
- Diesel: Diesel fuel is our largest petroleum export and is in heavy demand all around the world, especially in Europe. Diesel is a critical transport fuel and is used in industrial applications. Indian diesel meets international quality standards and is a major source of revenue.
- Petrol: India is an exporter of petrol to countries with established vehicle markets. Indian petrol conforms to all specified international quality standards. It is a substantial export comfort, facilitating global mobility.
- Aviation Turbine Fuel: It is a very important fuel type for the Aviation Sector, and is one of the largest oil products that is exported. There are notable demands for it in Europe and Africa, and thus, its exports from India have grown considerably.
- Kerosene Oil: Kerosene is exported mainly with the developing world in mind for heating and lighting or as jet engine fuel. Kerosene is still a staple in India’s petroleum export bucket. Its versatility as a fuel remains valuable on the whole, either as a household fuel or an industrial fuel.
- Fuel Oil: Fuel oil is a heavy form of petroleum that is characteristically more viscous or heavy. It is exported to developed and emerging economies alike. Fuel oil demand comes primarily from energy and manufacturing.
- Liquefied Petroleum Gas (LPG): LPG is produced and exported by India largely into markets with proximity, such as convenience, and typically for cooking, heating, and hot water applications, where LPG supply meets the needs of Indian quality and safety standards.
- Bitumen: Bitumen is widely used and regarded for its physical and chemical properties, and is used as the most durable, elastic, and adhesive. India exports Bitumen to countries investing in new roads and two-lane highways.
- LOBS (Lube Oil Base Stock) / Lube Oil: Lube oil and its base stocks are critical for the lubrication of automotive and machinery equipment. India exports these products, and they are consumed globally in manufacturing. They are vital for ensuring the engines and equipment operate smoothly.
Export Destinations: Mapping the Global Reach
Often India’s petroleum products find their way into international markets, as India’s largest markets for its exports typically include Europe, Africa, South East Asia, and the Americas. The international dynamics regarding petroleum exports from India have changed considerably recently for various reasons, such as changes in geopolitical conditions and different trade and trading institutional arrangements.
Europe: The New Powerhouse Market
Europe has firmly established itself as the number one destination for India’s petroleum exports, with $18.4 billion worth of products exported across the April 2023 to January 2024 time frame. The Netherlands has taken on a significant role in this trade, with 25% of total petroleum product transfers from India occurring in the same time frame. This allows for a good distribution base that can process Indian petroleum products in countries all around Europe, thanks to its port and infrastructure.
Other Major Destinations
- Singapore: Singapore, a larger trading and refining hub, imported over $5.7 billion of Indian petroleum products in the same time frame, but it is obvious that India is building export markets elsewhere.
- UAE and USA: The UAE and the USA are key large importers. The UAE is over $5.4 billion, and the USA is over $5 billion worth of Indian petroleum products being imported.
- Australia and South Africa: Even Australia and South Africa began importing more during the time period mentioned, clearly showing an increase in the global footprint of Indian petroleum products.
- Africa: In December 2024, Africa became the largest importer for importing Indian petroleum, clearly illustrating a growing need for energy in Africa.
Strategic Shifts: Geopolitics and India’s Export Boom
India’s crude oil export approach has been shaped by global developments, particularly the war in Ukraine and the resultant Western sanctions on Russian oil. By buying the discounted Russian crude, refining it back in India, and exporting the refined products to other markets, India stepped in to meet shortages in Europe and elsewhere. Between FY2021 and FY2024, diesel (up over 1,150%) and aviation turbine fuel (up 480%) exports to Europe increased substantially.
Export Volumes and Revenue
- In the first nine months of FY 2024-25, India exported 47.5 million tonnes of petroleum products. Later on, there was a yearly increase of 1.5% in the period.
- Total Petroleum products exports totalled 70.13 billion dollars during the fiscal period of April 2023 to January 2024.
- Diesel, petrol, and ATF continue to be primary growth drivers, with ATF consumption seeing the greatest growth at 9.8%.
The Road Ahead
India’s efficient petroleum export sector epitomises the country’s economic and strategic vision, technical capabilities, and importantly, the country’s ability to adapt to shifting and unpredictable global energy markets. With the world now looking for quick and reliable refined petroleum suppliers, India is looking to further increase its opportunities as a supplier, creating new opportunities for exporters.
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