India's imports of refined petroleum products increase

29 Jun 2022 , 12:31 PM

The world’s energy markets, which have already seen several oddities in 2022 as flows are redirected and prices rise, have now encountered a new one: India, traditionally Asia’s top supplier of refined petroleum products, has increased its imports of these products.

According to Vortexa Ltd., gasoline imports increased to around 13,000 barrels per day in the first half of June, a seven-month high. Meanwhile, according to tenders by Indian Oil Corp. and Bharat Petroleum Corp. as well as estimates from Vortexa, diesel imports are expected to rise to their highest level since February 2020 at over 48,000 barrels per day.

In spite of India’s rise to the leading consumer of spurned Russian oil following the invasion of Ukraine and its refiners’ all-out effort to create gasoline, the uncommon upswing has been caused by a desire to fill local shortages. Private refiners in India increased their exports as a result of rising global product prices, resulting in scarcity that state processors are now scrambling to fill with more imports.

India’s increased import activity is reducing Asia’s fuel supply at a time when China, another major exporter of diesel and gasoline, has been making cuts. Following refinery maintenance this month, planned gasoline supplies from China for July have been decreased, according to industry consultancy OilChem.

According to industry analyst FGE, there have been fuel shortages in the states of Gujarat and Tamil Nadu due to India’s hurry to purchase gasoline and diesel, which has already caused a jump in regional refining margins for both fuels. According to a recent report from FGE, the nation is anticipated to continue importing more gasoline in the upcoming months.