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Singapore Leads India's Petroleum Export Boom
17 Sep
Summary
- India's petroleum exports grew by 46% between April and August 2026.
- Shipments to UAE and US declined sharply, while Singapore saw over 150% growth.
- Singapore became India's largest petroleum export market in April-June 2026.
India's merchandise exports saw an 18.8% year-on-year increase from April to August 2026, with petroleum exports alone rising by 46%. This marks a strong recovery after three fiscals of decline. The improvement is attributed to favorable oil terms of trade since the West Asia conflict began, with refined petroleum export prices rising faster than crude import costs. Petroleum export volumes in July 2026 reached their highest since September 2025.
Key export destinations have shifted significantly this fiscal. Between April and June 2026, shipments to the UAE and US fell by over 40% each. Conversely, exports to Singapore, Tanzania, and South Africa surged by more than 150%. Singapore became India's top petroleum export market with $4.3 billion in shipments during April-June 2026, followed by Tanzania ($2.2 billion) and the Netherlands ($2 billion).
This changing export landscape is influenced by supply disruptions from traditional exporters like West Asia and Russia. Gulf exports of LPG remained below pre-war levels, and Russia extended its ban on diesel and gasoline exports until January 2027. India's robust petroleum export performance has helped mitigate a sharper widening of its oil trade deficit.
