Energy exporters face crude shock, tougher competition

THE DEVELOPMENT COMES AT A TIME WHEN INDIA IS LOOKING AT EXPANDING ITS CRUDE REFINING CAPACITY AND BECOME A PETROCHEMICALS AND REFINING HUB

- Rituraj Baruah

NEW DELHI: As the US has announced a 27% additional tariff on imports from India, petroleum products exports to the country are set to witness a major impact going ahead, said sector experts.

A bulk of the petroleum exports to the US from India comprises petrol or gasoline. India's annual petroleum product exports to the US is around $5-6 billion (approximately ₹41,750-50,100 crore).

According to Deepak Mahurkar, leader, oil & gas at PwC India, the additional tariffs may lead to an increase in trade deficit for India.

"The 27% duty on imports of petroleum products into the US from India of about $6 billion in 23-24 (FY24) will significantly get affected. The trade deficit on just the account of petroleum crude at about $5 billion will further widen."