Though Indian has maintained its position as “most favoured nation" status from Pakistan for more than five years, petroleum products were never in the imports list.
The opening of the trade routes for petroleum products also opens new markets for Indian petroleum exporters like Reliance Industries Ltd (RIL) and Essar Oil. Indian Oil Corporation"s Panipat refinery and HPCL-LN Mittal group"s upcoming Bhatinda refineries will be at an advantage due to its geographical closeness.
Pakistan has a refining capacity about 12 million tonnes, which could meet only half of the annual requirements of the country. Indian export of refining products has expanded from 746,000 tonne in FY2000 to 51 million tonne in FY2010.