Snapshot

World’s fastest-growing energy market

India is the third largest energy and oil consumer in the world after China and the US.

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

India consumed 213.13 MMT petroleum products and 64.14 BCM natural gas in FY 2019-20, marking a growth of 0.4% and 5.5% over the FY 2018-19 consumption levels.  India’s projected oil demand is going to grow at CAGR of 4% during 2016
- 2030 against the world average of 1%, though the projected oil demand will be much lower as compared to the US and China.

  • 230 billion-barrel O+OEG conventional hydrocarbons in over 3 mn sq.km area, spread over 26 sedimentary basins, is available for investors
  • India aims to reduce oil and gas imports dependence by 10% by 2022
  • The total number of fuel retail outlets increased from 18,848 (2002) to 77,094 (2021) at a CAGR of 7.7%
  • Present share of natural gas in the energy mix of the country is 6%. The aim is to increase it to 15% by 2030
  • 12 Biofuel refineries are planned to be opened with an investment in the oil and gas sector of around $1.9 bn
  • GoI is planning to set up around 5,000 compressed biogas (CBG) plants by 2023  under the SATAT scheme
  • Ethanol blending in petrol will grow from 5% to 20% by 2030 in India 
  • Natural Gas production (weight: 6.88 per cent) increased by 18.9 per cent in July, 2021over July, 2020.
  • Petroleum Refinery production (weight: 28.04 per cent) increased by 6.7 per cent in July, 2021 over July, 2020.
  • Export of Petroleum Products was valued at $4559.82 bn in August 2021 with a positive growth of 139.78% over exports of $1901.64 bn in August 2020.

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

100% FDI allowed in Strategic disinvestment of a PSU with 'in-principle' approval granted by the Government via automatic route

For further details, please refer FDI Policy

  • %

    Gas Consumption CAGR (2015-20)

  • %

    Oil Consumption CAGR (2015-20)

  • %

    Fuel RO CAGR (2002-19)

Explore Related Sub Sectors

Largest exporter of petroleum products in Asia

Second largest refiner in Asia

Third largest energy consumer in the world

Industry Scenario

India has emerged as a refinery hub and plans to increase refining capacity to 400 MMTPA by 2025.

India's current refining capacity stands at 249 MMTPA, comprising of 23 refineries—18 under public sector, 3 under private sector and 2 in a joint venture. Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 70 MMTPA. Top three companies – IOC, Bharat Petroleum Corporation (BPCL) and Reliance Industries (RIL) - contribute around 66.3% of India's total refining production from FY 2018 - 19.

33,764 Km Natural Gas Pipeline Network across the country has been authorized with the aim to create a national gas grid. About 19,998 km of Natural Gas pipeline are operational and 15,369 km are under progress.

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 262.94 MMT in year 2019-20.

Crude oil production during July 2021 was 2,548.78 TMT and Cumulative crude oil production during April-July 2021 was 9,961.65 TMT.

Natural gas production during July 2021 was 2,891.96 MMSCM and Cumulative natural gas production during April-July 2021 was 11,060.07 MMSCM

74 lakh new LPG connections were issued by OMCs in FY20-21.

Liquefied Natural Gas (LNG) supply is forging ahead on both coasts with 5 new LNG Terminals and 1 expansion project under construction - 3 on the west coast and 2 on the east coast. Together with the projects under construction, overall capacity will reach 62.5 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 70%

  • Abundant raw material

    Natural Gas Reserve at 1.3 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

  • 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

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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.

For more information, click here

 

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