NEW DELHI: India’s export of petroleum products recorded a year-on-year surge of over 8% in July, as margins improved amid a global supply shortage following Russia’s ban on diesel exports and ample supplies of crude to India during the US-Iran ceasefire.Govt data showed India exported 2.4 million tonnes (MT) of diesel in July this year, up from 2.2 MT in the corresponding month last year, while total petroleum product exports rose from 5 MT to 5.5 MT. Diesel is currently commanding nearly 70% premium over crude, making exports lucrative for refiners despite the windfall gains tax govt brought in to ensure adequate domestic stocks.

While the Indian basket of crude averages $90 per barrel this month, diesel averages $150 per barrel.

Windfall tax imposed by govt, however, has ensured refiners meet domestic demand before exporting the surplus.India is the second-largest crude importer, but it has stepped up fuel exports, consolidating its position as a major supplier of refined petroleum products to neighbouring countries as well as South Asian, African and European nations.