<article><p class="lead">India's oil product exports edged up on the year in 2021, even as domestic demand rose, with product cracks widening on the back of an economic recovery in the Asia-Pacific region.</p><p>Preliminary data from Vortexa show product shipments of 1.4mn b/d last year, compared with 1.3mn b/d in 2020. Exports were 1.6mn b/d in December, up from 1.4mn b/d in November. India is a net exporter of oil products.</p><p>Exports of clean petroleum products — including gasoil, gasoline, naphtha and jet fuel — were 1.33mn b/d in 2021, up from 1.26mn in 2020. Shipments rose in December to 1.56mn from the preceding month's 1.36mn. Shipments of dirty products such as bitumen and fuel oil rose to 55,000 b/d in 2021 from 47,000 b/d in 2020, and to 25,000 b/d last month from 21,000 b/d in November.</p><p>The 92 Ron gasoline margin, or the <i>Argus</i> 92 Ron gasoline spot price against Ice Brent, averaged $7.56/bl in 2021 compared with $1.74/bl in 2020, in line with an <a href="https://direct.argusmedia.com/newsandanalysis/article/2288212">increase in driving activity around the region</a>. The Singapore gasoil swaps against Dubai crude averaged $9.12/bl, up from $6.81/bl in 2020. A sharp reduction in Chinese exports helped gasoil and gasoline margins.</p><p>The major share of India's exports were of diesel and gasoil, which rose slightly to 595,000 b/d from 587,000 b/d in 2020. Shipments of 743,000 b/d in December were up from 595,000 b/d a month earlier. Finished gasoline exports rose to 257,000 b/d last year from 224,000 b/d in 2020, but fell in December to 268,000 b/d from 276,000 b/d a month earlier. Shipments of jet fuel were 99,000 b/d in 2021, up from 85,000 b/d in 2020, and rose last month to 163,000 b/d from 128,000 b/d in November.</p><h3>Demand growth</h3><p>India's transport fuel demand was mixed for most of the first half of 2021, but slumped during a new lockdown imposed to curb the second wave of the Covid-19. Gasoline consumption <a href="https://direct.argusmedia.com/newsandanalysis/article/2242697">recovered in the second half of last year</a> after restrictions were eased, and surpassed pre-pandemic levels. Jet fuel use <a href="https://direct.argusmedia.com/newsandanalysis/article/2288229">held below 2019 levels</a> even though demand rose on the month and on the year during the last six months.</p><p>Diesel demand was subdued, with a lower preference for public transport such as buses that use gasoil, but consumption started to recover on the month in the October-December period.</p><p>State-controlled refiners began to increase runs in the second half of 2021 to meet rising gasoline consumption and are <a href="https://direct.argusmedia.com/newsandanalysis/article/2276161">now running at maximum or higher capacity</a> on anticipation that demand growth will be robust in the coming months. State-owned refiners account for around 90pc of India's fuel sales, and private sector firms are the major exporters.</p><h3>Export by ports</h3><p>Around 78pc of the oil products exported in 2021 were from ports close to private-sector refineries, the Vortexa data show. Sikka on India's west coast, where Reliance Industries operates the 1.24mn b/d Jamnagar refinery complex, shipped 902,000 b/d, the most of any port last year. The second-largest quantity, around 178,000 b/d, was exported from Vadinar, where Russian-owned Nayara Energy operates a 400,000 b/d refinery. New Mangalore port, close to state-run MRPL's 300,000 b/d refinery, shipped 95,000 b/d.</p><p>In December, 61pc [or 958,000 b/d] of oil products were exported from Sikka, and 13pc [199,000 b/d] were from Vadinar.</p><p>The top destination for exports in 2021 was Singapore, accounting for about 9.4pc of the total or 128,000 b/d. The UAE accounted for 8.3pc or 114,000 b/d, and the US imported 90,000 b/d or 6.6pc.</p><p>Australia was the top destination for the products exported in December, at 175,000 b/d or 12pc of the total. UAE and Singapore were the other two biggest importers, accounting for 9.1pc and 8.3pc, respectively.</p><p class="bylines">By Sathya Narayanan, Aldric Chew and Cara Wong</p><p><div class="picture"><div><span class="pic_title">India's monthly oil product exports</span> <span class="units">mn t</span></div><img src="https://argus-public-assets-us.s3.amazonaws.com/2022/01/06/india'smonthlyoilproductexports06012022034818.jpg"></div></p><p><div class="picture"><div><span class="pic_title">India's monthly transport fuel consumption in 2021</span> <span class="units">mn b/d</span></div><img src="https://argus-public-assets-us.s3.amazonaws.com/2022/01/06/india'smonthlytransportfuelconsumptionin202106012022034844.jpg"></div></p></article>
