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May 19, 2024

Nayara Energy Reports 48% Surge in Q1 Petrol Sales Amid Rising Local Demand

Nayara Energy, India’s largest private fuel retailer, reported a remarkable 48% increase in petrol sales during the first quarter of 2024. This surge in domestic sales occurred alongside a significant drop in exports as the company prioritized meeting the rising local demand for fuel.

In the January-March quarter, Nayara sold 70% of the petroleum products produced at its Vadinar oil refinery in Gujarat to the local Indian market. The company stated, “Nayara Energy is primarily focused on catering to the growing demand for petroleum products in India through institutional business, sales to other oil companies, and through its own retail chain.”

Adhering to its mission of ‘In India, For India,’ Nayara Energy posted robust growth in its domestic market. The company saw a 24% year-on-year increase in domestic retail sales and a 12.5% rise in institutional sales. Petrol sales within India rose to 0.89 million tonnes in Q1 2024, compared to 0.60 million tonnes in the same period in 2023. Diesel sales remained stable at 1.7 million tonnes.

“Nayara believes in being a strong partner to India’s energy needs and will continue to serve the country’s energy consumption demands,” the company emphasized. The positive economic momentum in the first quarter, fueled by the harvest season, further bolstered domestic fuel consumption.

India, despite its crude oil production shortfall, boasts a surplus refining capacity, resulting in significant exports of petroleum products like diesel. According to the oil ministry, the country produced 276.1 million tonnes of petroleum products against a consumption of 233.3 million tonnes in the fiscal year 2023-24.

Nayara Energy continues to dominate as the largest private retail network with over 6,500 petrol pumps across India. Their network is nearly fully automated, enhancing control and standardization. After fulfilling domestic demand, Nayara exported surplus products totaling around 1.53 million tonnes, including jet fuel, diesel, and petrol during Q1 2024.

The percentage of petrol exports declined from 37% of total gasoline sales in Q1 2023 to 11% in Q1 2024, underscoring Nayara’s focus on domestic market needs. The primary export markets for Nayara remain Africa, Southeast Asia, and the Middle East, with no automotive fuels being exported to Europe. Out of the total 1.53 million tonnes exported, gasoil exports accounted for about 0.95 million tonnes. Over the past five years, gasoil exports to the European Union have remained minimal.

India saw a 5.3% growth in petrol and diesel consumption from January to March 2024, with a total consumption of 32.3 million tonnes of auto fuels compared to 30.7 million tonnes during the same period in the previous year. This growth was driven by an 8.4% increase in petrol consumption and a 4.1% rise in diesel consumption.

“Nayara is committed to providing the energy that fuels the dreams of its customers, partners, communities, and employees,” the statement reiterated. The company contributes approximately 8% of India’s oil refining output, operating a 20 million tonnes per year refinery at Vadinar.

Alessandro des Dorides, Chief Executive Officer of Nayara Energy, reaffirmed the company’s dedication to India’s energy needs, stating, “Reaffirming its commitment to being a trusted partner for India’s rising energy demand, Nayara Energy has been building its domestic business in a sustained manner. With 70% of its products being consumed in the Indian market, and the company delivering 8% of India’s refining output, Nayara Energy is committed to contributing to India’s energy security.”

Jhumpa Lahiri

Jhumpa Lahiri

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