New Delhi: Oil trade in India is entering a new phase, as for the first time in the nation’s history India will be exporting fuel. Indian Oil Corporation (IOC) has started the exports of aviation gasoline, which is used to operate unmanned aerial vehicles (UAVs) and small planes. The beginning of fuel exports marks the entry of India into an estimated $2.7 billion global market.
The first consignment of 80 barrels of aviation gas was shipped from the Jawaharlal Nehru Port Trust (JNPT) to Papua New Guinea over the weekend. According to the company’s statement, each barrel contains 16 kiloliters of aviation gas.
“The indigenous production of the gas named AV gas 100 LL will not only help save foreign exchange but will also make training in domestic flying schools economical for budding pilots,” IOC chairman SM Vaidya was quoted as saying in the company statement.
Aviation gasoline is a high-octane aviation fuel with superior performance and quality standards compared to imported fuels. Usually, flying schools use this fuel for piston-engine aircraft. The gas is certified by the Directorate General of Civil Aviation (DGCA) and will benefit around 35 flying schools in the country.
Unmanned Aerial Vehicles (UAVs) are increasingly being used in modern warfare, including in Russia-Ukraine, so the development marks an important milestone for India from the perspective of defense preparedness.
After addressing the domestic demand for the fuel, the Indian Oil Corporation is looking forward to tapping markets with a high demand for aviation gasoline in regions like South America, Asia Pacific, West Asia, Africa, and Europe.
Till last September, India was sourcing this fuel from European markets. In September 2022, Indian Oil Corporation began the production of aviation gasoline at its Vadodara facility. Currently, the IOC is the sole manufacturer of the fuel in India and the facility has an annual capacity of 5,000 tonnes.
IOC Chairman added that the global market of aviation gas is expected to grow at 5% CAGR (compounded annual growth rate) while the aviation traffic of the country is expected to grow at 7% CAGR. He expressed confidence that India will be able to secure a significant market share with superior performance, quality standards, and competitive prices.
Discussion about this post