India's Refined Fuel Exports Drop To Lowest Level Since October 2022

India's refined fuel exports dropped to their lowest level in over three and a half years in May 2026. Refinery maintenance, stronger domestic demand and a push to increase LPG production left less fuel available for overseas markets.

According to data from energy analytics firm Kpler, India's refined fuel exports dropped to around 930,000 barrels per day (bpd) in May, compared with export levels that had consistently remained above one million bpd in recent months. India has not seen fuel exports drop this much since October 2022, when exports averaged nearly 926,000 bpd.

Industry analysts attributed the decline to a combination of lower refinery throughput, planned maintenance activities and refiners increasingly prioritising the domestic market over exports. Kpler's refining analysis showed that maintenance-related disruptions reduced the availability of exportable fuels during the month.

Refinery Maintenance And Domestic Demand Weigh On Exports

India's refining sector has also been operating below recent levels. Provisional government data showed that the country's crude oil processing fell to 5.23 million bpd (21.39 million metric tonnes) in April, down 8.9% month-on-month, reflecting the impact of refinery shutdowns that continued to affect fuel production into May.

Another major factor behind the export decline was the stress on securing domestic fuel supplies. India, which is the third-largest oil importer and consumer in the world, has directed refiners to prioritise local demand amid concerns over energy security and LPG availability. The country processes roughly 5.6 million bpd of crude oil across its refining network.

Private-sector giant Reliance Industries, operator of the world's largest refining complex, has also reduced exports of alkylates and redirected feedstock to increase LPG production.

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Export Economics Turn Less Attractive

Export economics further weakened during the month. Higher demand at home, weaker profits from overseas sales and export taxes on products such as diesel and aviation turbine fuel (ATF) made exporting fuel less attractive for Indian refiners. As a result, more fuel was kept for domestic use instead of being shipped abroad. Industry estimates suggest that India's fuel exports plunged by as much as 31% from a year earlier in May. Some reports also put average exports at around 878,000 barrels per day, underlining just how sharply overseas fuel shipments declined during the month.

Sources:

Economic Times

The Hindu