Nayara Energy exports decline by 10% in 2023 as domestic demand surges

Nayara Energy, India's largest private fuel retailer, saw petroleum product exports drop by 10 per cent in 2023 as it supplied more products domestically to meet the fuel demands of a growing economy, sources said.

Nayara, which operates a 20 million tonne a year oil refinery at Vadinar in Gujarat and a network of over 6,500 petrol pumps, exported 6.21 million tonne of petroleum products, including jet fuel, gasoil (diesel) and gasoline (petrol) between January 2023 and December 2023, down 10 per cent year-on-year.

This was primarily because of larger consumption at home. The company is catering to the domestic market through institutional business, sales to other oil companies and its own retail chain.

Of all the petroleum products Nayara produced, 68 per cent were sold within the country and the remaining 32 per cent of products, including, ATF, gasoil and gasoline were exported, sources said.

According to the oil ministry's Petroleum Planning and Analysis Cell (PPAC), consumption of petroleum products rose 5.1 per cent to 192.7 million tonnes during the first 10 months of the current fiscal.

This growth was led by a 6 per cent expansion in petrol, 4 per cent in diesel and 12 per cent in ATF consumption. Natural export markets for Nayara are in the Middle East, Africa and South-East Asia - the markets, which have a consistent appetite for the company's products throughout the year, they said, adding the firm did not supply any gasoline or gasoil to Europe during 2023.

Commercially, it is unviable to cater to the seasonal requirements of EU markets (winter grade diesel). "Nayara's diesel does not meet the winter specification requirements of the EU market," a source said.

Africa, South-East Asia and the Middle East got 81 per cent of all products Nayara exported in 2023.

Out of the total 6.21 million tonnes exported, gasoil exports stood at about 3.45 million tonnes, roughly 56 per cent of all exports for the same period. Some of the export markets include Africa, the Middle East, South east Asia and Australia.

While Nayara supplied no gasoil to Europe during 2023, the percentage of the fuel exports to the EU has been less than 3 per cent of the total gasoil exports during the last five years, sources said.

The gasoline export sales percentage has decreased year-on-year from 26 per cent of total gasoline sales in 2022 to 24 per cent of total gasoline sales in 2023.

Sources said all domestic sales channels of Nayara showed robust year-on-year growth - retail at 28 per cent, institutional sales at 16 per cent and oil marketing companies at 26 per cent.

Reached for comments, Nayara said it "is in India and for India - highly driven and committed to fueling the nation's growing demand for energy".

"As a major downstream player, delivering 8 per cent of India's refining output, Nayara Energy fuels the country's dreams and aspirations, contributing significantly towards India's energy security," the firm said in e-mailed comments.

"We believe in being a strong partner to India's energy needs and will continue to serve the country's consumption demands. We are committed to providing the energy that fuels the dreams of our customers, partners, communities and employees."

Speaking of its retail network, the firm said it caters to the need for reliable and safe mobility across the length and breadth of the country.

"Nayara Energy embodies the idea of sustainable growth, as we empower opportunities by leveraging our world-class assets to drive progress and provide value to the nation," it added.