Page 30 - Policy Economic Report- June'26

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Geographical Trends

Export diversification across regions continued during May 2026, with strong growth observed in several
Asian and African markets.

Top export destinations (May 2026 growth):

• Tanzania – 196.89%
• Sri Lanka – 150.29%
• South Africa – 116.21%
• Italy – 87.54%
• Singapore – 68.96%

Top import sources (May 2026 growth):

• Brazil – 358.83%
• Oman – 305.66%
• Russia – 63.46%
• United States – 54.43%
• China – 23.40%

Index of Eight Core Industries (ICI)

The Index of Eight Core Industries (ICI), a key indicator of industrial activity, increased by 0.5
%(provisional) in May 2026 compared with May 2025, indicating a moderation in core sector growth
following the 1.8 % expansion recorded in April 2026. The subdued growth reflected continued weakness
across energy-related sectors, including coal, crude oil, natural gas, refinery products and fertilizers, while
robust growth in steel, cement and electricity production helped sustain positive momentum in overall
industrial activity.

The ICI tracks the performance of eight core industries—coal, crude oil, natural gas, refinery products,
fertilizers, steel, cement, and electricity—which together account for 40.27 % of the weight in the Index
of Industrial Production (IIP). Consequently, the index serves as an important leading indicator of
industrial production, infrastructure development and economic activity.

Sector-wise Performance

• Coal – Coal production (weight: 10.33 %) declined by 9.3 % in May 2026 over May 2025. Its
cumulative index declined by 9.1 % during April–May 2026–27 compared with the corresponding
period of the previous year.

• Crude Oil – Crude oil production (weight: 8.98 %) decreased by 4.6 % in May 2026 over May 2025.
Its cumulative index declined by 4.2 % during April–May 2026–27 over the corresponding period
of the previous year.

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