Nayara Energy's domestic sales increased in FY 22

According to news reports, Nayara Energy, the second-largest private oil refinery in India, reported a steep fall in gasoline exports as domestic sales soared due to the development of the retail network and increased demand. 

In the calendar year 2022, 61% of sales came from the local market, and the remaining 39% came from exports of all goods, including jet fuel (ATF), diesel, and petrol.

Diesel exports accounted for about 4.39 million tonne, or roughly 64% of all exports, of the 6.91 million tonne of fuel that Nayara shipped in 2022.

According to a corporate spokesperson who talked to ET, Asia, the Middle East, and Africa accounted for more than 84% of total gasoline exports, with only trace amounts travelling to the EU.

The majority of the fuel generated by Nayara’s 20 million tonne per year oil refinery in Gujarat’s Vadinar was sold through its 6,500+ petrol stations, the largest fuel retail network operated by a private enterprise.

The Middle East and Africa contributed roughly 84% of Nayara Energy’s total exports between January and March 2023, after meeting domestic demand, the spokeswoman said, adding that domestic sales during the quarter were 67% of overall sales.

Domestic sales then increased to 73% of all fuel sold in April and to 79% in May. In contrast, the official reported that exports fell to 27% of all petroleum sold in April and 21% in May.

A meagre 0.07 million tonnes of diesel, or just 1.7% of all diesel exported over the period of April 2022 to March 2023, were provided by Nayara to Gibraltar (Europe) via foreign traders. However, no petrol (petrol) has been shipped to the country.

According to news reports, Nayara is dedicated to meeting India’s energy requirements as seen by the growth in its domestic supplies year over year. As more retail fuel stations were opened, the percentage of export sales decreased from 46% in calendar year 2019 to 39% in calendar year 2022.

Through institutional business, sales to other oil firms, and its own retail chain, the corporation focuses primarily on serving the domestic market.

While historically the Middle East and Africa have been Nayara’s primary export markets because they have a steady demand for its goods throughout the year, it is not economically feasible for Nayara to meet the seasonal needs of EU markets (winter-grade diesel).

Rosneft, a Russian company, owns 49.13% of Nayara Energy, while UCP Investment Group and Mareterra Group, an Italian company, each own 24.5%. 

For feedback and suggestions, write to us at editorial@iifl.com