India Petroleum Products Exports Increased Six Percent Up to Feb 2017
New Delhi: India’s petroleum exports grew by more than 6 percent in the first 11 months of 2016-2017 to 58.9 million tonnes on the back of domestic surplus of petroleum products.
Petroleum exports during the first 11 months of FY17 constituted 10.6 percent of India’s gross exports in value. India’s petroleum exports in value increased by 3.18 percent to $25.9 billion up to Feb 2017.
According to an ICRA report the exports of ATF/Kero increased by 64.4 percent in the third quarter of FY17 as compared to the corresponding period a year ago. Cumulatively ATF exports grew by 48.8 percent n the first nine months of FY17 as compared to corresponding period a year ago owing to healthy crack spreads and increasing domestic production with the ramp up of the Paradip refinery.
Export of diesel increased by 24.5 percent in the third quarter of FY17 and cumulatively by 17.9 percent in the first nine months of FY17 as compared to the corresponding period a year ago owing to strong demand from Pakistan, Australia, Vietnam and Africa.
The export of fuel oil increased by 50.1 percent in the third quarter of FY17 owing to healthy bunker demand amid lower supply by Russia and the Middle East but cumulatively in the first nine months of FY17, fuel oil exports declined by 22.0 percent due to healthy domestic demand growth.
Export of naphtha also increased during the first nine months of FY17 owing to the stagnant consumption in the domestic market and increasing production due to ramp up of the Paradip refinery. The export of petrol declined by 19.8% in the third quarter of FY17 and cumulatively by 1.7 percent in the first nine months of FY17 as compared to the corresponding period a year ago due to robust growth in domestic demand.
According to ICRA report the compounded average growth rate in domestic consumption of petroleum products over the last five-year period has been high at 9 percent for petrol, 4.4 percent for diesel and 4.1 percent for aviation fuel. The report adds that healthy demand in the auto industry barring certain commercial vehicle segments, along with decline in prices of petroleum products, will lead to higher than the long-term average over the medium term. However, notwithstanding the anticipated growth in domestic consumption, ICRA expects the surplus in the aforementioned products to persist in the medium term, given the commissioning of new refineries and brown-field expansions in India.