Performance of Motor Spirit (Petrol) Exports from India

Abstract

This study paper focuses mostly on performance of India's motor spirit export. India's exports of motor spirits experienced a positive growth rate. The motor spirit export has demonstrated a high level of instability. After imposing restrictions a year ago, the government has extended restrictions on the export of motor spirits to ensure that refined fuel is available in the domestic market. Oil refiners are mandated by the government to sell at least 50 per cent of their annual volume of motor spirit to the domestic market. Private oil companies discouraged from importing Russian oil for export to other countries, including many EU countries, by the move. The curbs were first put in place after the Russia-Ukraine war that started on February 24, 2023, as the non-state refiners started taking advantage of cheap oil coming from Russia to garner maximum profit. The government earlier said that the prices of motor spirit have not been increased by public sector Oil Marketing Companies (OMCs) since April 6, 2022, despite record-high international prices. If the governments take steps to reduce the restriction on motor spirit exports, the motor spirit exports could be increased to a desired level. Moreover, by the result of increased motor spirit exports the more foreign exchange reserve could be accumulated.