India's petroleum product export earnings surged nearly 50% in rupee terms to ₹2.59 lakh crore in April-September, despite a 16% decline in shipment volume, according to petroleum and natural gas ministry data. The earnings increased nearly 40% in dollar terms, reflecting sharp rises in international fuel prices. The gains were amplified by the rupee's depreciation, with the currency averaging 95.17 to the dollar in April-September against 86.44 a year earlier, representing a slide of about nine rupees against the US currency. Crude oil prices remained elevated over the past six months amid supply disruptions caused by the near-closure of the Strait of Hormuz, while average regional benchmark prices for diesel and petrol climbed 83% and 54% respectively during the six months to September.
Diesel emerged as the largest contributor to earnings growth, with export earnings rising 58% in rupee terms to about ₹1.2 lakh crore despite a 19% decline in volume. In dollar terms, diesel earnings increased 48%, while average regional diesel benchmark prices rose to $151 per barrel. Diesel prices faced additional pressure from attacks on Russian refineries and tighter supply-demand conditions, pushing prices to record highs in some months. Diesel and petrol together accounted for nearly 70% of India's petroleum export earnings in rupee terms, with diesel making up 42% of petroleum product exports by volume.
Petrol export earnings rose 21% in rupee terms to ₹58,000 crore and 13% in dollar terms, despite a 24% fall in volume. Average regional petrol benchmark prices increased to $120 per barrel. According to industry executives, the decline in export volume reflects tightening domestic surplus as demand expanded while production stagnated. In the six months to September, diesel and petrol consumption grew 5% and 7% respectively, while production fell 0.3% and 0.8% respectively. Domestic consumption remained strong despite geopolitical uncertainty and domestic price increases, leaving refiners with less fuel to sell overseas.
India primarily exports diesel, petrol, jet fuel, naphtha and fuel oil, with diesel making up 42% of petroleum product exports by volume and petrol 23%. Reliance Industries accounts for about 70% of India's fuel exports, with Rosneft-backed Nayara Energy, state-run MRPL and other refiners supplying the remainder. The rupee has remained under pressure over the past six months amid elevated crude oil prices and foreign capital outflows, with higher oil prices increasing dollar demand from domestic refiners paying for imported crude, which accounts for nearly 90% of domestic consumption. About a quarter of the dollars spent on importing crude and fuels returns through exports, while by volume, India exports a fifth of the crude and fuel it imports.
