Commerce & Industry Ministry additional secretary J K Dadoo has said that due to fall in fuel prices overseas, the exports of petroleum products have been dipped. Low prices of crude, metal and commodity, dip in manufacturing and slowdown in western markets are some of the factors attributing to the fall. Also there has been increase in demand for petroleum-based products in the domestic markets because of the deregulation of diesel prices. Dadoo further said that trading with the European Union has been impacted due to economic woes of the 27-nation bloc.
Reliance, which accounts for over quarter of the country’s exports reported over 40% plunge in exports in Q1 of the current fiscal. Essar Oil too reported decline in petroleum products exports during the same quarter as oil prices across the globe were falling, due to fall in demand in the world's largest oil consumer China and increased shale gas production in the US, which is the second largest oil market globally.
Hit by global slowdown and dip in crude oil prices that impacted the value of petroleum products, exports were down 10.3% in July 2015 to $23.13 billion compared to that of $25.79 billion in same month last fiscal. The last time when the exports had registered a positive growth was in November 2014, where shipments expanded 7.27%.
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