Indian Oil Corporation begins export of Aviation Gasoline for the first time

The oil trade in India is entering a new phase, as India will export the fuel for the first time in the country’s history. Indian Oil Corporation (IOC) has started exporting Aviation Gasoline, which is used to operate Unmanned Aerial Vehicles (UAVs) and small aircraft. The start of fuel exports marks India’s entry into an estimated $2.7 billion global market.

Over the weekend, the first consignment of 80 barrels of aviation gas was dispatched from the Jawaharlal Nehru Port Trust (JNPT) to Papua New Guinea. According to the company’s statement, each barrel contains 16 kiloliters of aviation gas.

“The indigenous production of the gas named AV Gas 100LL will not only help in saving foreign exchange but will also make training in domestic flight schools affordable for budding pilots.” IOC Chairman SM Vaidya was quoted as saying in the company’s statement.

Aviation gasoline is a high-octane aviation fuel with better performance and quality standards than imported fuels. Flying schools typically use this fuel for piston-engined 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 an important milestone for the development India in terms of defense preparedness

After meeting the domestic demand for the fuel, Indian Oil Corporation is looking forward to tapping markets with high demand for aviation gasoline in regions such as 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 started production of aviation gasoline at its Vadodara facility. Currently, IOC is the sole manufacturer of the fuel in India and the facility has an annual capacity of 5,000 tonnes.

The IOC President said that the global market for aviation gas is expected to grow at 5% CAGR (Compound Annual Growth Rate), while the country’s aviation traffic is expected to grow at 7% CAGR. He expressed confidence that India would be able to capture a significant market share with improved performance, quality standards and competitive prices.

(With inputs from PTI)

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