New Delhi

India's overseas shipments of refined petroleum products declined sharply in May, falling to their lowest level since October 2022 as refinery maintenance activities, changing production strategies and stronger domestic demand reduced export volumes.

According to data from market intelligence firm Kpler, exports of refined fuels averaged about 930,000 barrels per day (bpd) during May. This marks the weakest monthly performance in more than two-and-a-half years and is comparable to the 926,000 bpd exported in October 2022.

Industry experts attributed the decline to a combination of operational and market factors. Kpler's Model and Refining Manager, Sumit Ritolia, said lower refinery utilisation rates, maintenance shutdowns and a growing focus on meeting domestic fuel requirements were the primary reasons behind the reduced exports.

One of the major contributors was the scheduled maintenance programme at the Jamnagar refining complex operated by Reliance Industries. As India's largest refinery and a significant exporter of petroleum products, reduced processing activity at the facility led to lower export availability during the month.

Refiners also altered their production mix to increase supplies of liquefied petroleum gas (LPG) for the domestic market. This adjustment resulted in an estimated reduction of around 80,000 bpd in petrol and diesel output, limiting volumes available for export.

The shift reflects efforts to meet growing local demand for LPG and other essential fuels. At the same time, state-owned refiners allocated a larger portion of their production to domestic consumers, citing the need to maintain adequate fuel supplies and strengthen energy security.

Export profitability has also come under pressure. According to Ritolia, taxation on refined fuel exports has reduced the attractiveness of overseas sales, encouraging refiners to prioritise domestic markets instead.

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The decline highlights the changing dynamics of India's petroleum sector, where maintenance schedules, domestic consumption trends and policy considerations are increasingly influencing trade flows. Despite the slowdown, India continues to remain one of Asia's leading exporters of refined petroleum products.