India’s Fuel Exports Drop to Nearly 4 Year Low in May Amid Domestic Supply Focus

India’s fuel exports fell significantly in May 2026, touching their lowest level in nearly 4 years as refiners focused on ensuring domestic fuel availability.  

According to data from Kpler, outbound shipments of diesel, gasoline, and jet fuel averaged about 8,78,000 barrels per day in May. This marked the lowest export level since October 2022 and represented a 31% decline compared to the same period last year. 

India’s Fuel Exports Hit Multi-Year Low 

India’s exports of refined petroleum products dropped sharply during May as domestic requirements took precedence. The decline came amid concerns over global supply disruptions linked to tensions in the Middle East and scheduled refinery maintenance activities. 

The conflict in the region led to concerns over the movement of crude oil and fuel supplies through the Strait of Hormuz, prompting several Asian countries to prioritise domestic fuel security and limit exports. 

Higher LPG Production Impacts Export Availability 

Part of the decline in exports was attributed to a shift in refinery production towards liquefied petroleum gas (LPG). LPG is widely used as a household cooking fuel across India and had previously relied heavily on imports from the Middle East. 

According to the oil ministry, India’s refiners increased LPG production to a record 52,000 tonnes per day in May, representing a 50% increase compared to a year ago. 

Export Tax and Refinery Maintenance Add Pressure 

The decline in exports was also influenced by policy and operational factors. India imposed an export tax on gasoline for the first time in 4 years, which weighed on overseas shipments. 

Additionally, refinery maintenance activities affected fuel availability for export markets. Reliance Industries, India’s largest fuel exporter, redirected some fuel volumes to the domestic market after shutting a unit at its west coast refinery in mid-May. The refinery is primarily designed to cater to domestic demand. 

Asian Countries Adjusting Export Policies 

Several Asian countries, including South Korea, China, and Thailand, initially curbed fuel exports to safeguard domestic supplies. These measures later led to increased stockpiles, prompting some governments to allow the resumption of overseas sales. 

The return of exports from these countries helped ease some demand for Indian fuel products in international markets. 

Conclusion 

India’s fuel exports fell to their lowest level since October 2022 in May 2026, declining 31% year-on-year to an average of 8,78,000 barrels per day. The drop was driven by efforts to secure domestic fuel supplies, increased LPG production, refinery maintenance activities, the imposition of a gasoline export tax, and changing market dynamics across Asia. 

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