India Positioned as a Leading Exporter of Refined Oil Products, Anticipates Significant Growth in Petroleum Product Exports
India’s petroleum product exports are projected to rise by approximately 25% from the fiscal year 2025 level of $44.4 billion. This increase is anticipated over the next few years as new refining capacity comes online by December 2026, driven by Indian Oil Corporation’s (IOCL) largest expansion program to date. Despite importing around 90% of its crude oil, India has emerged as a leading exporter of refined petroleum products, leveraging its advanced refineries to process imported crude for both domestic and international markets.
IOC’s refining capacity boost
IOCL’s expansion will elevate its total refining capacity from 80.75 million metric tonnes per annum (MMTPA) to a record 98.05 MMTPA. A senior official at IOCL stated that any surplus capacity after fulfilling domestic needs will be directed towards exports, potentially increasing the export share of total revenues from the current 5% to about 15%. The company has already invested over Rs 53,500 crore of the planned Rs 75,000 crore for this expansion.
The expansion projects are focused on IOCL’s refineries in Panipat, Vadodara, and Barauni. The refining capacity at Panipat will increase from 15 MMTPA to 25 MMTPA, Vadodara’s capacity will rise from 13.7 MMTPA to 18 MMTPA, and Barauni’s capacity will grow from 6 MMTPA to 9 MMTPA. All three projects are expected to be commissioned between November and December 2026. Currently, India’s refining industry has an installed capacity of around 258.1 MMTPA, while domestic consumption is approximately 239 MMTPA.
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