Gujarat gets over 4-fold boost in petroleum exports amid Russia-Ukraine war
AHMEDABAD : Gujarat has significantly benefited from the ongoing Russia-Ukraine war over the past three years, with a sharp rise in crude oil exports. As a result, crude oil now accounts for nearly 50% of the state’s total exports.
In four years, the export of oil and its products from Gujarat’s ports has increased 4.3 times. In 2020-21, the export of crude oil and its products from Gujarat was ₹95,716 crore, which increased to ₹5,09,817 crore in 2023-24.
| Year | Crude oil import in India (₹ lakh crore) | Petroleum product exports from Gujarat (₹ lakh crore) | ||
|---|---|---|---|---|
| From Russia | Total import | Total export | Product export | |
| 2020-21 | 0.07 | 4.4 | 4.55 | 0.95 |
| 2021-22 | 0.18 | 9.14 | 9.46 | 3.92 |
| 2022-23 | 2.51 | 13.02 | 12.02 | 6.02 |
| 2023-24 | 3.85 | 11.55 | 11.13 | 5.09 |
On the other hand, the share of agricultural and manufacturing sector exports decreased. In 2023-24, the share of agriculture and related products (including fish and other marine products) in the state’s total exports was 7.1%, and the share of manufacturing was 45.9%. Earlier, in 2020-21, the share of agriculture was 12.3%, and the share of manufacturing was 65.5%.
When the US imposed sanctions on Russia, India’s close ally, Putin announced that he would provide India with a large amount of oil at a discounted price compared to the market. India accepted this, and a massive import of crude oil from Russia started in India. In the pre-war year 2020-21, Russia’s share in India’s total crude oil imports of ₹4.40 lakh crore was only 1.6%. In 2023-24, India imported crude oil worth ₹3.89 lakh crore from Russia.
Industry experts report a significant surge in petroleum product exports from Gujarat’s ports, driven by increased crude imports to India following US sanctions. The rise in crude availability has fuelled higher exports of petrol and diesel, contributing to this remarkable growth in the sector.
US-based energy analyst Dr Anas Alhajji said that in terms of bilateral trade, India’s total crude oil export market share in Europe has remained stable between 12% and 14% since 2019. However, due to US sanctions, exports from India reach Europe through other countries.
In the past four years, this indirect share of Indian products has increased by about 50%. Most of this export has been through private refineries located in India, as per Dr Alhajji. According to his estimate, India was exporting 1.5 lakh barrels of petroleum products daily, which increased to 3 lakh barrels per day in 2024.