Energy-deficient India imports 70 per cent of its crude oil needs, but domestic oil product demand is around 10 per cent below the country's 2.3-million-barrel-per-day refining capacity, leading refiners to sell overseas.
In 2001/02 (April-March), oil products exports rose to 10.08 million tonnes from 8.26 million in the previous year as domestic demand declined for two straight years. In April-September this year, India exported 5.40 million tonnes of oil products.
"We expect a rise in exports of naphtha and a slight fall in petrol exports. Exports of heavier distillates are also likely to rise. Overall, we should see growth of three to five per cent," the official, who asked to remain unnamed, told Reuters.
In 2001/02, India exported 2.86 million tonnes of diesel, up from 1.59 million the previous year, while petrol exports doubled to 2.4 million tonnes.
In the first half of this fiscal year, India exported 1.48 million tonnes of diesel and 1.18 million tonnes of petrol, industry estimates show.
"Average monthly diesel exports are about the same as last year but petrol exports are slightly lower," he said.
Petrol sales are lower because domestic demand has risen nine per cent in April-November due to higher passenger car and motorcycle sales.
But domestic diesel demand has been static this year and industry officials expect export volume to be about the same as last year.
Jet fuel exports are expected to rise much faster. "Exports in the six months of this fiscal year have been almost the same as the 1.93 million tonnes in all of 2001/02," the official said.