World’s fastest-growing energy market

India is the 3rd 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 213.2 MMT petroleum products and 60,747 MMSCM natural gas. The import dependency of crude oil and LNG during 2018 was 82.59% and 45.89% respectively. During 2018, petroleum import bill was $ 112 bn, a growth of 27% over $ 88 bn during 2017 - 18, and 23.42% of total gross import of the nation. 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 area, spread over 26 sedimentary basins, is available for investors
  • India aims to reduce oil and gas imports dependence from by 10% by 2022
  • The demand for petroleum products is estimated to reach 244,960 MT by 2021-22 at a CAGR of 10%
  • The total number of fuel retail outlets increased from 18,848 (2002) to 64,624 (2019) at a CAGR of 7.5%. State-owned marketing companies are planning to add 78,000 new fuel retail outlets.
  • 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 of $1.5 bn

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

For further details, please refer FDI Policy

  • 3.44 %

    Gas Consumption CAGR (2014-19)

  • 5.19 %

    Oil Consumption CAGR (2014-19)

  • 10 %

    Petrochemical Industry CAGR (by 2022)

  • 7.5 %

    Fuel RO CAGR (2002-19)


Largest exporter of petroleum products in Asia


Second largest refiner in Asia


Third largest consumer of crude oil and petroleum products in the world

Industry Scenario

India has emerged as a refinery hub.

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 80.7 MMTPA. Top three companies – IOC, Bharat Petroleum Corporation (BPCL) and Reliance Industries (RIL) - contribute around 66.7% of India's total refining production from FY 2018 - 19.

At present about 16,788 km natural gas pipeline is operational and about 12,672 km gas pipelines are under development.

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 243.5 MMT during 2016-17 to 262.3 MMT in 2018-19. 

Liquefied Natural Gas (LNG) supply is forging ahead on both coasts, with 8 new R-LNG terminals (4 on the west and 4 on the east coast) coming up. Together with the six existing terminals, overall capacity will reach 74 MMTPA.

Growth Drivers

  • Strategic Petroleum Reserves Program

    It envisions creation of additional crude oil reserves facilities in PPP mode
  • City Gas Distribution

    Coverage area has gone up from 20% to 70%
  • Abundant raw material

    Oil reserves equal 604 MMT and natural gas reserves equal 1.2 TCM
  • Favorable policies

    HELP, CBM and OALP to promote investments
  • Government incentives

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

    Coalbed Methane (CBM) policy

    This policy specifies the modality for taking up commercial…

  • Open

    Discovered Small Fields Policy

    The policy offers improved fiscal terms such as no oil cess…

  • Open

    Hydrocarbon Exploration & Licensing…

    This policy allows an open acreage licensing, full freedom f…

  • Open

    New Exploration Licensing Policy (NELP)

    The main objective of the policy is to attract significant r…

  • Open

    Open Acreage Licensing Policy(OALP): Mod…

    Open Acreage Licensing Policy(OALP): Modalities for operatio…

  • Open

    Policy Framework for Exploration and Exp…

    Policy framework for exploration and exploitation of unconve…

  • Open

    Policy Framework to Promote and Incentiv…

    To provide fiscal incentives to adopt Enhanced Recovery (ER)…

  • Open

    Policy Reforms in Exploration of Oil and…

    To increase exploration activities, attract domestic and for…

Investible Projects

Investment Opportunities in Oil & Gas

  • Projects


  • Opportunity

    $2.54 bn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$637.91 mn

Ennore Petrochemical Cluster Project [Chennai]

State (s) Tamil Nadu

$637.91 mn

Kakinada Petrochemical Cluster Project [East Godavari]

State (s) Andhra Pradesh

$637.91 mn

Mangalore Petrochemical Cluster Project [Dakshin Kannada]

State (s) Karnataka

$379.64 mn

Floating Storage & Regasification Unit Project [Mumbai]

State (s) Maharashtra

Major Investors

Data on Map

  • Oil Refineries in India

Latest in Oil & Gas


Asked Questions

  • What would be the GST applicability if RO dealer supplies lube at free of cost?

    Since lube is supplied at free of cost (therefore no consideration involved), it would not be treated as supply (as per section 7 of CGST Act, 2017) under GST and hence, not leviable to GST. However, input tax credit of GST paid on such lube at the time of purchase is required to be reversed u/s 17(5)(h) of CGST Act, 2017.

  • What is Export Parity Price (EPP)?

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

  • What is Import Parity Price (IPP)?

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

  • What is Bio-diesel and Bio-diesel policy?

    Bio-diesel is a fatty acid containing similar properties to petroleum diesel fuels, which can be a substitute of High Speed Diesel (HSD). MoP&NG announced a bio-diesel policy in October 2005 to encourage the production of bio-diesel. Under this policy, effected from 01.01.2006, OMCs are allowed to blend 5% of bio-diesel (B100) meeting the fuel quality as per BIS with high speed diesel. With renewed focus on Bio-fuels, the Government, on 16 January 2015, allowed direct sale of biodiesel by manufacturers/suppliers of biodiesel/their authorized dealers and Joint Ventures (JVs) of OMCs as authorized by MoP&NG to all consumers. On 10 August 2015, the Government has allowed sale of Bio-diesel (B100) by private manufacturers to bulk consumers. Also, retailing of bio-diesel blended diesel by Public.

  • What is the major difference between BS III and BS IV types of petrol and HSD?

    Major difference in the grades of fuels is in terms of quantity of total sulphur present and aromatic content. For petrol, maximum permissible sulphur quantity and aromatic content (% volume) are kept at 150 (mg/kg) (ppm) and 42% respectively for BS-III whereas 50 mg/kg (ppm) and 35% respectively for BS IV. In HSD, quantity of maximum permissible sulphur in BS III types is maintained at 350 mg/kg (ppm) and 50 mg/kg (ppm) for BS IV.

View all