India's Fuel Exports Hit 4-Year Low Amid Refinery Maintenance and High Local Demand

India's overseas shipments of refined petroleum products fell to their lowest level in more than three years during May 2026, as per PTI news reports.  

Export volumes dropped to approximately 930,000 barrels per day (bpd), reflecting lower refinery activity and a stronger focus on meeting domestic fuel requirements. 

Export Volumes Hit Multi-Year Low 

According to data from Kpler, India's refined product exports declined to around 930,000 bpd during May 2026.  

The figure was close to the 926,000-bpd recorded in October 2022, marking the weakest monthly export performance since then. 

The decline highlights shifting dynamics within India's refining sector as companies balance export opportunities with local energy requirements. 

Refinery Maintenance and LPG Demand Affect Output Mix 

One of the major contributors to lower exports was planned maintenance at Reliance Industries Jamnagar refining complex, the country's largest refinery and a key supplier of refined fuels to international markets.  

The maintenance programme reduced crude processing rates, limiting the availability of products for export. 

At the same time, refiners adjusted production patterns to increase liquefied petroleum gas (LPG) output for domestic consumers. This shift resulted in an estimated reduction of around 80,000 bpd in petrol and diesel production. 

As more capacity was directed towards LPG, the volume of export-oriented transportation fuels available for overseas markets declined. 

Domestic Market Takes Priority 

State-owned refiners also increased supplies to the domestic market amid efforts to maintain adequate fuel availability and support energy security requirements.  

This led to a larger share of production being retained within the country instead of being exported. 

The trend reflects a growing emphasis on serving local demand, particularly during periods when domestic consumption remains strong and supply reliability becomes a priority. 

Export Economics Become Less Attractive 

Apart from operational factors, the economics of overseas sales have become less favourable for refiners.  

According to Kpler, taxes on refined fuel exports have reduced the relative attractiveness of international shipments compared with domestic sales. 

As a result, refiners have had fewer incentives to increase exports despite India's position as one of Asia's largest fuel-exporting nations. 

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

Conclusion 

India's refined petroleum exports fell to around 930,000 bpd in May 2026, reaching their lowest level since October 2022. Refinery maintenance, increased LPG production, stronger domestic demand and weaker export economics combined to reduce overseas shipments during the month.   

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