India's Fuel Exports Decline to Lowest Levels Since 2022 Amid Refinery Maintenance and Domestic Demand Constraints

India's Refined Petroleum Exports Hit 4-Month Low

India's exports of refined petroleum products fell to approximately 930,000 barrels per day (bpd) in May, the lowest level since October 2022. This decline was driven by a combination of lower refinery throughput, maintenance activity, and a structural pivot toward the domestic market. According to data analytics firm Kpler, exports declined to around 930,000 bpd, down from levels last seen when shipments averaged 926,000 bpd in October 2022.

Planned maintenance at Reliance Industries' Jamnagar refining complex, India's largest refinery and a major exporter of refined fuels, was a key factor behind the decline. The maintenance programme reduced crude processing rates and limited the availability of export volumes during the month. Additionally, refiners adjusted product yields to increase production of liquefied petroleum gas (LPG) for the domestic market, reducing output of petrol and diesel by an estimated 80,000 bpd.

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State-owned refiners further contributed to the decline by directing a larger share of output to the domestic market amid concerns over energy security and the need to maintain adequate local fuel supplies. This move reflects a broader trend of prioritizing domestic demand over export markets. According to Kpler, export economics have also become less favourable, with taxes on refined product exports reducing the attractiveness of overseas sales relative to domestic supply, limiting incentives for refiners to increase shipments abroad.

The sharp fall in exports underscores how refinery maintenance, evolving fuel demand patterns, and policy considerations are reshaping India's refined product trade flows, even as the country remains one of Asia's largest fuel exporters.