Nayara Energy Clocks 10 Per Cent Fall In Exports In 2023 On High Domestic Demand

According to the report, over 68% of Nayara's petroleum products were sold domestically, with the remaining 32% going to exporters as gasoline, gasoil, and ATF

Nayara's domestic sales channels exhibited exponential year-on-year growth, with the retail sector showcasing a rise of 28 per cent. ( Image Source :Getty Images )

India's premier private fuel retailer, Nayara Energy, clocked a decline of 10 per cent in petroleum product exports in 2023, attributed to a shift in focus towards meeting the escalating fuel demands of the domestic economy, media agencies reported citing sources.

From January to December 2023, Nayara exported 6.21 million tonnes of petroleum products—a 10% decrease from the previous year—from its operational 20 million tonnes per annum oil refinery in Vadinar, Gujarat, along with an extensive network of over 6,500 petrol pumps carrying jet fuel, gasoil (diesel), and gasoline (petrol), reported PTI citing sources. This was attributed to the high level of consumption at home, as the firm provides services to the local market via institutional business, retail businesses, and sales to other oil companies.

The report said that approximately 68 per cent of Nayara's petroleum products found their way into the domestic market, while the remaining 32 per cent, comprising ATF, gasoil, and gasoline, were exported.

Data from the oil ministry's Petroleum Planning and Analysis Cell (PPAC) revealed a 5.1 per cent increase in the consumption of petroleum products, reaching 192.7 million tonnes during the first ten months of the fiscal year.

The surge in consumption was particularly notable in petrol, diesel, and ATF, with growth rates of 6 per cent, 4 per cent, and 12 per cent respectively. Nayara's natural export markets predominantly lie in the Middle East, Africa, and Southeast Asia, which exhibit consistent demand for the company's products throughout the year.

Commercially, it is unfeasible 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 accounted for 81 percent of Nayara's total exports in 2023. Out of the 6.21 million tonnes exported, gasoil exports constituted approximately 3.45 million tonnes, representing about 56 percent of total exports during the same period. Some export markets include Africa, the Middle East, Southeast Asia, and Australia. While Nayara refrained from exporting gasoil to Europe in 2023, the share of fuel exports to the EU has consistently remained below 3 percent of total gasoil exports over the past five years. Furthermore, the proportion of gasoline export sales witnessed a fall year-on-year, dropping from 26 percent of total gasoline sales in 2022 to 24 percent in 2023.

Nayara Exhibits Exponential Growth On Domestic Sales

Sources outlined that Nayara's all domestic sales channels exhibit exponential year-on-year growth, with the retail sector showcasing a rise of 28 per cent, institutional sales at 16 percent, and oil marketing companies at 26 per cent.

In response to queries, Nayara emphasised that 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 percent of India's refining output, Nayara Energy fuels the country's dreams and aspirations, contributing significantly towards India's energy security."

"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," the firm noted.

Regarding its retail network, the company stated that it meets the demand for dependable and secure transportation throughout the entire nation. "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 further said.