India steps up fuel imports amid shortage; Asia's pool of supplies shrinks

Rush to import petrol and diesel has already led to a surge in regional refining margins

fuel
Petrol imports are set to rise to about 37,000 barrels a day in the first half of July, an eight-month high. Photo: PTI
Elizabeth Low and Debjit Chakraborty | Bloomberg
2 min read Last Updated : Jun 30 2022 | 2:13 AM IST
Global energy markets that have thrown up plenty of anomalies in 2022 as flows get rerouted and prices jump just saw a fresh quirk: India, typically Asia’s leading petrol and diesel exporter, has been forced to step up imports of the fuels.

Petrol imports are set to rise to about 37,000 barrels a day in the first half of July, an eight-month high, according to preliminary data by Vortexa Ltd. Diesel imports, meanwhile, are set to surge to the highest since February 2020 at about 69,000 barrels a day in the period. Refiners such as Indian Oil Corp and Bharat Petroleum Corp recently sought to buy diesel for delivery in June and July. The rare uptick has been driven by a need to cover local shortfalls even as India has emerged as a top buyer of shunned Russian crude following the invasion of Ukraine, and its refiners go all out to produce fuels.

Elevated international product prices have prompted India’s private refiners to boost exports, creating a shortage that state processors are now rushing to address with extra imports. The heightened import activity from India is shrinking Asia’s pool of fuel supplies at a time when China, which is also a key shipper of diesel and gasoline, has been cutting back. Planned fuel volumes from China for July have been reduced following refinery maintenance this month, according to industry consultant OilChem.

India’s rush to buy petrol and diesel has already driven a surge in regional refining margins for both fuels, according to industry consultancy FGE, which said there have been fuel shortages in the states of Tamil Nadu and Gujarat. The country is expected to keep importing more fuel in the coming months, FGE said in a recent note.

Surge in shipments
 
  • Petrol imports are set to rise to about 37,000 barrels a day in the first half of July
  • Diesel imports are set to surge to the highest since February 2020 at about 69,000 barrels a day
  • The heightened import activity from India is shrinking Asia’s pool of fuel supplies

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :fuel importsFuel prices

Next Story