Nayara Energy sees 14.3% rise in domestic fuel sales

Nayara Energy, India’s largest private fuel retailer, posted a 14.3 per cent rise in fuel sales for the second quarter of the 2024 calendar year, while exports dropped as the firm met rising local demand for fuel.

In the April-June quarter, Nayara sold 75 per cent of all diesel it produced at its Vadinar oil refinery in Gujarat in the local Indian market and 60 per cent of its petrol production locally.

Over the past few years, Nayara Energy has steadily built its domestic business while expanding its fuel retailing network strategically to underserved markets that uphold the potential to fuel India’s growth.

 Retail diesel sales rose 14 per cent to 2.08 million tonnes in April-June from 1.82 million tonnes a year back, while institutional business’ year-on-year growth was 23 per cent, Nayara said.

Similarly, retail petrol sales grew 14.7 per cent to 0.916 million tonnes in the second quarter compared to 0.809 million tonnes a year back.

Nayara Energy owns the largest private retail network with over 6,500 petrol pumps across India. Its retail network is fully automated (99 per cent of petrol pumps) for enhanced controls and standards, enhancing mobility and connectivity within our nation.

After fulfilling domestic demand in India, surplus products were exported by Nayara Energy – about 1.36 million tonnes (28 per cent of total sales), including jet fuel, diesel and others, during April-June 2024.

Given the robust demand in the Indian market, petrol export sales have decreased from 36 per cent of total petrol sales in April-June 2023 to 21 per cent in April-June 2024.

Nayara exported 1.36 million tonnes of fuel in April-June this year, of which 0.65 million tonnes was diesel. Its natural export markets are in Africa, Southeast Asia and the Middle East.

Over the past five years, diesel export sales to the EU as a percentage of total diesel exports are minuscule, Nayara said.

According to the oil ministry data, automotive fuels (petrol and diesel) during April-June 2024 recorded a volume of 34.36 million tonnes with a growth rate of 3.1 per cent compared to the volume of 33.32 million tonnes during the same period of the previous year. This growth was led by a 7.1 per cent rise in petrol and 1.6 per cent in HSD consumption.

Nayara “is committed to be in India for India” – and is committed to be a strong partner in India’s growing economy, the firm said.

India is short in production of crude oil (raw material for making fuels like petrol and diesel), but it has surplus refining capacity, which leads to the export of petroleum products like diesel. Against the consumption of 233.3 million tonnes, petroleum product production was 276.1 million tonnes in 2023-24, oil ministry data showed.