India is positioning itself as a major global refining hub as its oil-processing capacity expands while refinery capacity declines in Europe and other Western markets. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said India is on track to increase its refining capacity to 300 million tonnes per annum (MTPA) by 2030.
Speaking to reporters on the sidelines of the 29th Energy Technology and Innovation Meet in South Goa on October 27, 2026, Puri said India’s refining capacity is currently around 290 MTPA. Capacity expansion at existing facilities and the addition of new projects are expected to strengthen the country’s position in international energy markets.
India’s Refining Capacity Expands as Global Capacity Declines
Puri highlighted the contrast between India’s growing refining infrastructure and the reduction in capacity in several Western markets. He estimated that Europe is losing at least 250,000 barrels per day of refining capacity annually, partly as smaller and less efficient facilities face higher logistical costs and operational challenges.
India’s expanding refining network is expected to help the country meet rising domestic fuel demand while increasing exports. The minister said the country would be in a position to supply more petroleum products to both domestic and international markets.
India’s refining strategy has focused on expanding existing facilities, improving efficiency and increasing production to meet changing demand patterns. Several refineries are scaling up operations, with some facilities doubling capacity from three million tonnes to six million tonnes annually, while others are expanding from six million tonnes to nine million tonnes.
Diesel Exports Set to Rise from 2027
India’s expanding refining capacity is also expected to boost diesel exports from 2027. State-owned refiners plan to add a combined 16.5 million tonnes of annual diesel production capacity next year, strengthening India’s position in the global refined-fuel market.
Indian Oil Corporation expects its refinery expansions to add around eight million tonnes of annual diesel output. Hindustan Petroleum Corporation’s new Rajasthan refinery is expected to contribute three million tonnes, while Bharat Petroleum Corporation plans to add 1.5 million tonnes. Numaligarh Refinery is expected to contribute another three million tonnes following its expansion.
India has emerged as the world’s second-largest exporter of seaborne diesel, behind the United States, according to ship-tracking data cited by Reuters. Higher domestic production could free up additional volumes for export as state-owned refiners reduce their reliance on purchases from private suppliers.
India’s Ambition to Become a Global Energy Hub
India’s refining expansion forms part of a broader strategy to strengthen energy security and increase its role in global energy trade. The country’s refineries can process different grades of crude oil and a range of feedstocks, allowing refiners to respond to changing market conditions and produce higher-value fuels.
Puri also highlighted initiatives such as Samudra Manthan and GOBARdhan, which are expected to complement the country’s conventional energy infrastructure and support the development of alternative energy sources.
India’s refining capacity is expected to rise further beyond 300 MTPA over the longer term. The government and industry are seeking to leverage infrastructure investment, rising energy demand and export opportunities to establish India as a key supplier in international petroleum markets.
With global supply disruptions and refinery closures affecting fuel markets, India’s capacity expansion could strengthen its role as a reliable source of refined petroleum products. The challenge will be to balance export opportunities with domestic requirements as energy demand continues to grow.
