India exports 43 per cent more diesel in November

New Delhi: India exported 43% more diesel in November than a year ago as local demand slipped while refineries ran above their capacity. Domestic diesel demand fell 3% year-on-year in November as commercial transport and factory activity slowed after a festive surge. In the first seven months of this financial year, the increase in domestic diesel demand had been unusually strong at 6.7%, higher than petrol’s 6%. The growth in diesel consumption was 5.4% for the April-November period.

Lower local demand in November along with high refinery runs helped build a surplus for strong exports. India exported 28% of the diesel it produced in November.

Local refineries processed 5.29 million barrels a day (mbd) of crude in November, higher than 4.78 mbd last November and 5.17 mbd in the April-November period of this year. The combined nameplate capacity for Indian refiners is 5 mbd.

Production of refined petroleum products increased 12% year-on-year in November and 5% in the April-November period. Diesel comprised 44% of the total refined products produced in November.

Private sector refiners Reliance Industries and Rosneft-backed Nayara Energy are the main exporters. State-run refiners also buy from private refiners to meet domestic demand. Europe and the US are the key destinations for India’s diesel exports these days.