India’s outbound shipments of refined petroleum products—including diesel, gasoline, and jet fuel—plummeted to a nearly four-year low in May 2026. Data from analytics firm Kpler reveals that exports averaged roughly 8,78,000 barrels per day, marking a sharp 31% decline year-on-year and the weakest export performance since October 2022. This drop occurred despite a general inventory build-up across Asia caused by export restrictions earlier in the year. The primary driver for the decline was a deliberate pivot by Indian refiners to prioritise domestic market security over lucrative international margins, a strategic move insulated against escalating global supply uncertainties caused by the West Asia crisis and the closure of the Strait of Hormuz. Furthermore, a significant portion of this export slowdown stems from a massive domestic shift toward manufacturing Liquefied Petroleum Gas (LPG), according to a report.
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