India fuel exports earn nearly 50% more despite lower volumes

India fuel exports generated ₹2.59 lakh crore in April–September 2026, nearly 50% more than a year earlier in rupee terms, even as shipment volumes fell 16%. Higher international fuel prices lifted dollar earnings, while a weaker rupee further increased the value of those receipts in domestic currency.

Key Takeaways

• Export earnings rose nearly 40% in dollar terms, showing that higher receipts were not solely a currency effect.
• Diesel and petrol together accounted for nearly 70% of petroleum export earnings in rupee terms.
• Growing domestic consumption and slightly lower production reduced the surplus available for export.

India fuel exports gain from prices and currency

Petroleum and natural gas ministry data showed export receipts rising despite fewer shipments during the six months ended September 2026. Average regional benchmark prices increased 83% for diesel and 54% for petrol compared with a year earlier.

The rupee averaged 95.17 per dollar, against 86.44 in April–September 2025. That depreciation increased the rupee value of dollar-denominated export earnings, helping explain why growth in domestic-currency receipts exceeded growth in dollar receipts.

The Petroleum Planning & Analysis Cell’s petroleum trade data framework separates shipment quantities from values in rupees and US dollars. Those measures capture different aspects of trade: higher export receipts do not necessarily mean more fuel was sold overseas, and receipts are not a measure of refiners’ profits.

Diesel leads the increase in export receipts

Diesel export earnings increased 58% in rupee terms and 48% in dollars, despite a 19% decline in shipment volume. Petrol receipts rose 21% in rupees and 13% in dollars, while volumes fell 24%.

Diesel was also the largest product by shipment volume, accounting for 42% of petroleum product exports, followed by petrol at 23%. India’s other principal fuel exports include jet fuel, naphtha and fuel oil.

Domestic demand limits the export surplus

Domestic diesel consumption grew 5% during April–September, while petrol consumption increased 7%. Production moved in the opposite direction, falling 0.3% for diesel and 0.8% for petrol. An industry executive attributed lower export volumes to the resulting reduction in domestic surplus.

Reliance Industries accounts for about 70% of India’s fuel exports, with Nayara Energy, MRPL and other refiners supplying the remainder.

Higher export earnings provide only a partial offset to India’s oil import exposure. Imported crude accounts for nearly 90% of domestic consumption, and about a quarter of the dollars spent importing crude and fuels returns through exports.

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