The share of petroleum products in India’s gross exports fell to 8.8 per cent in FY26 on a provisional basis, which is the lowest share of the sector in more than 10 years, barring the Covid-impacted FY21.
According to the Petroleum Planning and Analysis Cell (PPAC), the share of the petroleum sector in India’s total exports stood at 8.8 per cent in FY26 compared to 10.1 per cent in FY25 and 10.9 per cent in FY24.
India’s export of petroleum products declined by 5.5 per cent Y-o-Y in FY26 mainly on account of a fall in outbound shipments of diesel and jet fuel, the Oil Ministry’s data processing arm pointed out.
Diesel exports fell by 2.5 per cent Y-o-Y to 27.32 mt (provisionally) in FY26. This was the third consecutive year of decline in diesel exports. Similarly, export of aviation turbine fuel (ATF) fell by a steep 20.35 per cent to 6.81 mt. Outbound shipments of jet fuel also declined for the third year in a row in FY26.
However, exports of petrol rose by 5.31 per cent Y-o-Y to 16.67 mt in FY26. Motor spirit exports rose for the third consecutive year in FY26.
Analysts attribute the decline in outbound shipments to sanctions by the European Union (EU) on products processed from Russian crude oil in third countries, sanctions by the US on Russian oil giants Rosneft and Lukoil, rising domestic demand and refinery maintenance.
Recently, Crisil in a commentary anticipated that India’s oil trade deficit is set to balloon anew in the current financial year.
Over the years, while the volume of imports have trended up, exports of refined petroleum products have been flattish, barring the surge after the Covid-19 pandemic, it pointed out.
From FY24, the pressure on oil trade deficit exacerbated because exports of refined petroleum products fell for two consecutive fiscals, even as oil imports continued to rise, it added.
The world’s fourth largest refiner exported 61.5 million tonnes (mt) of refined products worth $38.8 billion in FY26, compared to 65.1 mt worth $44.4 billion exported in FY25. India exported 62.6 mt of POL (Petroleum Oil and Lubricants) worth $47.7 billion in FY24.
“Consequently, the oil trade deficit in dollar terms rose, despite crude oil prices trending down in that period. This was a break from the past when the deficit used to narrow as crude oil prices fell. And now, with prices rising, the oil trade deficit is expected to be even higher this fiscal. We expect the price of Brent crude to average $90-95 per barrel in FY27 from $70.3 last fiscal,” Crisil said.
Published on May 26, 2026