Published: 16th Mar, 2023
Context
India’s petroleum product exports to the European Union (EU) have grown notably over the past few months as the region is suffering from no supplies of refined products from Russia, due to the war in Ukraine.
About:
- India’s petroleum product exports to the EU rose 20.4 per cent year on year in April-January to 11.6 million tonnes.
- The trend is significant as the global oil markets affected from Russia ban on supplies; countries like India are helping maintain a demand-supply balance, while preventing extreme price shocks.
- The EU does not want to buy crude as well as refined fuels and products from Russia.
- Countries like India, which is a major oil refiner, are playing their part in bridging the gap by buying Russian oil on one hand, and increasing the supply of refined products to the EU on the other.
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The term does not include naphtha-type jet fuel, kerosene-type jet fuel, or a petroleum product destined for use in chemical manufacturing or feedstock of that manufacturing or fuel sold to vessels engaged in interstate or foreign commerce. |
What are petroleum products?
- Petroleum product means products that are obtained from distilling and processing crude oil and that is capable of being used as a fuel for the propulsion of a motor vehicle or aircraft, including motor gasoline, gasohol, other alcohol-blended fuels, aviation gasoline, kerosene, distillate fuel oil and number 1 and number 2 diesels.
India Petroleum products industry:
- India is a major refiner with an annual refining capacity of about 250 million tonnes.
- While it is also one of the top consumers of crude oil, India’s refining capacity is higher than its domestic demand, making the country a net exporter of petroleum products.
- Indian refiners, particularly export-oriented private sector players Reliance Industries and Nayara Energy, stand to gain from the West’s punitive action against the Russian oil and gas sector.
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