India Poised to Become Second-Largest Oil Refiner by 2035: Hardeep Singh Puri
Union Petroleum Minister highlights India’s growing refining capacity, policy reforms, and export potential as global refining capacity shrinks
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has projected that India could become the world’s second-largest oil refiner by 2035, driven by strategic capacity expansion, technological advancement, and growing domestic demand.
Speaking at the Energy Technology Meet in Hyderabad on Tuesday, organized by the Ministry of Petroleum and Natural Gas and BPCL, the Minister said, “We will definitely go from the fourth to the third. We may end up with the second-largest refining sector in the world.”
Puri noted that the refining and petroleum sector contributes about 20% of India’s total revenue, underscoring its critical role in the country’s economic framework.
Citing data from international reports, he said over 100 of the world’s 420 refineries, representing nearly 18.4 million barrels per day or about 20% of global capacity, are likely to close within the next decade. “This downturn in global refining capacity offers a huge opportunity for India,” he added.
Currently, India exports refined petroleum products to more than 50 countries, with exports valued at over $45 billion last year. “This reflects not just scale, but also competitiveness and technological excellence,” the Minister said.
Capacity Expansion and Future Targets
India’s present refining capacity stands at 258 million tonnes per annum (MMTPA), with a target to reach 310 MMTPA by 2030. However, the Minister emphasized that Prime Minister Narendra Modi’s vision extends beyond this, aiming for 450 MMTPA capacity in the near future.
Highlighting the success of India’s biofuel initiatives, Puri said, “We achieved the 10% ethanol blending target ahead of schedule, and reached 20% six years before the 2030 goal.”
He stressed that the success of India’s energy transition depends on sound policy frameworks and effective implementation, adding, “A good policy framework and proper support system can help achieve even the most ambitious targets.”
Puri also mentioned that India’s contribution to global energy demand growth has risen from 25% to 30% in the last four years, reflecting the country’s rapidly evolving energy landscape.
