Snapshot

World’s fastest-growing energy market

India is the 3rd largest energy and oil consumer in the world

India is the 4th largest importer of liquefied natural gas (LNG).

India consumed 204.23 MMT petroleum products and 63.9 BCM natural gas in FY 2021-22, making a growth of 5.1% and 5%  over the FY 2020-21. India’s oil demand is projected to rise 50% to 7.2 MBD in 2030 from 4.8 mbd in 2019 as against a global expansion of 7%. India’s natural gas demand is projected to double to 133 BCM in 2030 from 64 BCM in 2019 as against a 12% rise in global gas demand.

  • The conventional hydrocarbon resources in India are currently estimated at approx. 42 BMT of Oil & Oil Equivalent of Gas (O+OEG), spread over 26 sedimentry basins covering an area of  3.36 mn sq. km
  • The total number of fuel retail outlets increased from 18,848 (2002) to 77,094 (2021) at a CAGR of 7.7%. This number has increased to 83,027 as of June 2022
  • India aspires to be a gas based economy by increasing the share of natural gas in India’s energy mix from 6.3 % to 15% by 2030
  • Target of setting up 12 Commercial Scale 2G Bio-Ethanol Projects with Viability Gap Funding of up to INR 150 Cr per project under the Pradhan Mantri Ji-VAN Yojana
  • Target of setting up 5000 Compressed Biogas (CBG) units under the Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme
  • GoI advanced the ethanol blending target to 20% blending of ethanol in petrol by 2025-26 from 2030

100% FDI allowed in exploration activities of oil and natural gas fields under automatic route

49% FDI allowed in petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs under automatic route.

100% FDI under the automatic route is allowed in case an 'in-principle'
approval for strategic disinvestment of a PSU has been granted by the Government

100% FDI allowed in infrastructure related to marketing of petroleum products and natural gas, petroleum product & natural gas pipelines, LNG regasification infrastructure,  market study and formulation and petroleum refining in private sector. 

For further details, please refer FDI Policy

  • %

    Gas Consumption CAGR (2015-16 to 2021-22)

  • %

    Petroleum Product Consumption CAGR (2015-16 to 2021-22)

  • %

    Petroleum Product Retail Outlet CAGR (2015-16 to 2020-21)

Explore Related Sub Sectors

Largest exporter of petroleum products in Asia since 2009 (FY 20-21)

Second largest refiner in Asia (FY 20-21)

Third largest energy consumer in the world (FY 20-21)

Industry Scenario

India plans to almost double its oil refining capacity to 450 MT in the next 10 years to meet the rising domestic fuel demand as well as cater to export market.

India's refining capacity stands about 251.2 MMTPA as on April 2022 , comprising of 23 refineries—19 under public sector, 3 under private sector and 1 in a joint venture. Refinery capacity utilization is 88.8% for the year 2020-21.  Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 80.6 MMTPA. Top three companies – IOC, Bharat Petroleum Corporation (BPCL) and Reliance Industries (RIL) - contribute around 70% of India's total refining production from FY 2020-21. Refining Capacity CAGR (2011-12 to 2020-21): 3.2%

One Nation One Gas Grid: A total of 21,946 km natural gas pipeline is operational and about 13,262 km gas pipelines are under development as on June 2022, as part of the Gas Grid. India targets increasing the pipeline coverage by ~60% by 34,500 km by 2024-25. All states are intended to be connected by a trunk national pipeline network by 2027.

India has witnessed a steady increase in production as well as consumption of petroleum products over the years. The production of petroleum products stood at 254.3 MMT in year 2021-22.

Cumulative crude oil production during FY 20-21 was 30.5 MMT. Natural Gas production for FY 20-21 was 28.67 BCM.

Exports of Petroleum products values at $ 4,907.81 mn in August 2022 and shares 14.87% of the total exports of the month. The Average Index of Industrial Production of Manufacturing of coal and refined petroleum products in the FY 2021-22 is 121.1 and has grown by 8.9%.

OMCs have taken several steps to encourage better consumption of LPG and reduce diversion and delay in supplies. 108 lakh new LPG connections were issued by OMCs from 2020 to 2021.

Liquefied Natural Gas (LNG) supply is forging ahead on both coasts with 06 operational LNG terminals. Total capacity of LNG terminals stands at 42.7 MMTPA.

GROWTH DRIVERS

  • Investments worth $118 bn by 2024

    $58 bn will be invested in E&P by 2023 and $60 bn will be invested in natural gas infrastructure by 2024

  • City Gas Distribution

    Coverage area has gone up from 20% to 88%

  • Abundant raw material

    Natural Gas Reserve at 1.37 TCM

  • Favorable policies

    National Data Repository (NDR), Discovered Small Field Policy (DSF),Marketing and Pricing freedom for natural gas, National Seismic Programme (NSP) of unappraised areas Planned 2D Seismic Survey for 48K LKM

  • Government incentives

    Early production royalty concession of 10%, 20% and 30% for Category I, II and III basins respectively

  • Setting up LNG stations

    Any entity can set up LNG stations in any Geographical Area in India even if they do not have a City Gas Distribution license

  • MoEFCC's gazette notification dated 16.01.2020

    Stipulates that seismic survey do not require prior Environmental clearance, provided the concession areas has got previous clearance for physical survey. Further, all project in respect of offshore and onshore oil and gas exploration are categorized as ‘B2’ projects” i.e., will not require an Environment Impact Assessment report

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Industrial Land Bank Portal

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FAQs

Frequently
Asked Questions

What is EPP or Export Parity Price?

Export Parity Price is the price which oil companies would realize on export of petroleum products. This includes Freight on Board (FOB) Price and advance license benefit (for duty free import of crude oil pursuant to export of refined products.

For more information, click here.

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What do you mean by import parity price?

Import Parity Price (IPP) is the price that importers would pay in case of actual import of product at the respective Indian ports. This includes FOB price, Ocean freight, Customs duty, Port dues etc.

For more information, click here

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What are biofuels?

The National Policy on Biofuels categorises Biofuels as:

“Basic Biofuels” viz. First Generation (1G) bioethanol & biodiesel and “Advanced Biofuels” – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio CNG etc.

For more information, click here.

 

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What are various types of petrol/ diesel available in India?

Various petrol types are as follows: MS 93/95, Bharat Stage (BS) IV, Bharat Stage (BS) VI, branded petrol (with additives) etc.

Various types of diesels are as follows: Light Diesel Oil (LDO), BS IV, BS VI, Bio Diesel, Branded Diesel (with additives) etc.

To know more about the Oil & Gas sector opportunity in India, please visit the Oil & Gas page at Invest India website.

For further details on Indian Petroleum and Natural Gas Statistics, please refer this link: http://petroleum.nic.in/sites/default/files/APR_E_1718.pdf

For more information, click here.

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Under what situations IGST is applicable?

As per the GST law, if the location of the supplier and place of supply is in different states then IGST would be applicable.

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