India’s Petroleum exports have been falling continuously after the last month. It means the revenue from the export of chemicals and petroleum products decreased. It was at $75.01 billion recently upon measuring from April to February 2024. However, it was $83.06 in the previous year. Thus, it is a straight 9% fall in the earnings. Everyone is curious to know about the reason behind this sudden fall in the year. Let us explore more about India’s petroleum export revenue fall below.
India’s Petroleum Export fell by 9.69%. There have been several reasons for this fall. However, there are still several discussions going on. The foremost reason is the global economic slowdown. The other two reasons are as follows.
- Rise in the Domestic Consumption
- Shrinking Discounts on Russian Oil
As more and more people are consuming the items domestically, there is a decrease in the export. Also, Russian Oil rates play a crucial role. If Russian oil is cheaper, the demand for their oil will increase automatically, Thus, more and more people will prefer the use of these countries’ petroleum products. The current data shows a 9.69% fall in Petroleum exports. The total revenue from the exports was $75.01 billion for the running year. While it was $83.06 billion for the previous year.
If we talk about India, the Ukraine war tried to impact India’s oil-buying decision a lot. Thus, we all know that India chose to buy the discounted Russian oil price, it helped the country to grow further in the sector. The first thing we discussed above is the increase in domestic consumption. The crude oil that India exports has a lot of its consumption in India only. Thus, very few amounts are sent outside. Consumption is rapidly increasing every year at a good percentage. Let us discuss the other reasons in detail below.
The second reason is that the Russian Oil discount is shrinking. What does this mean? It means that Russia which used to give a discount of $30 a barrel is now giving a discount of only $4. India used to buy crude oil from Russia and sell refined petroleum products in Europe. However, the decreasing discounts from Russia are making it difficult for the country to be profitable at the same rates. Thus, Russia’s crude oil price plays a crucial role in Petroleum’s export. We will provide more updates about this global shutdown slowly. Stay tuned for more information.