The Hindu Business Line : Crude oil imports in November up 6.5%

New Delhi, Dec. 28 To cash in on strong margins that make oil product exports attractive, and grow domestic demand, Indian refiners imported 6.5 per cent more crude oil in November this year compared to the same month last year.

According to official data, refiners imported 9.25 million tonnes of crude oil (8.68 mt in the same month last year). While the domestic demand for oil products rose 5.5 per cent in November to 10.60 mt (10.05 mt in the corresponding month last year), strong margins and controlled prices of petroleum products in the domestic market led to a 6.1 per cent increase in exports of petroleum products during the month to 2.89 mt (2.73 mt in the same month last year).

Diesel exports

The exports were high also due to private refiners exporting most of their transport fuels. While the State-owned oil companies are compensated for selling auto fuels at lower prices, no such mechanism exists for private retailers who prefer to export their output.

Diesel exports during the month were up 30.9 per cent, petrol 25.6 per cent and jet fuel exports rose 34.9 per cent. India exported 26.61 mt of oil products during April-November.

The increase in domestic demand was due to higher consumption of transport fuel. Petrol sales during the month were up 17.1 per cent in November, while diesel sales, which account for nearly a third of domestic consumption, rose 10.3 per cent.

Oil product imports in November rose 26.8 per cent mainly due to substantial increase in kerosene imports by State-owned refiners.

The refiners imported 8,29,900 tonnes of kerosene in November from 82,000 tonnes in the same month last year.

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