India's Petroleum Minister, Hardeep Singh Puri, has indicated that consumers should not expect immediate relief from current petrol and diesel prices. Puri explained that the fuel presently being sold was refined from crude oil purchased when global crude and freight rates were significantly higher, leading to substantial "under-recoveries and losses" for Oil Marketing Companies (OMCs).
Expanding India's Refining Capacity
Despite the current price situation, India is strategically boosting its oil refining infrastructure. Puri announced plans to increase the nation's oil refining capacity from approximately 270 million metric tonnes per annum (MTPA) to 300 MTPA within the next six months to two years. This expansion will be driven by the commissioning of several advanced refinery projects.
A key project highlighted by the Minister is the HPCL Rajasthan Refinery, which marks the first greenfield refinery since Indian Oil Corporation's Paradip refinery a decade ago. This new facility will add 9 MMTPA to refining capacity and 2.4 MMTPA to petrochemical capacity.
Looking further ahead, India aims to reach a refining capacity of 309.5 MMTPA by 2030, with an ambitious long-term goal of 400-450 MMTPA. This trajectory is set to position India among the top three global refining hubs, even as Puri noted that nearly 20% of global refineries (over 100) are projected to face closure by 2035.
Navigating Global Energy Challenges
Puri also detailed India's robust response to the West Asia crisis, during which more than 30 vessels faced blockades in the Strait of Hormuz. India successfully maintained adequate fuel stocks, including 60 days of crude and natural gas, and 45 days of LPG, by diversifying its crude supply sources from 27 to 41 countries. Furthermore, the nation shifted part of its production from petrochemicals to LPG, boosting output from 35 to 55 metric tonnes per day to meet demand.
In a move to further secure LPG supply, India has agreed to source 10% of its LPG from the United States, with deliveries commencing in January 2026. The country has also seen 1.3 lakh customers transition to Piped Natural Gas (PNG).
Strengthening Ties with Venezuela
The Minister touched upon India's enduring relationship with Venezuela, noting that Indian oil marketing companies have a history of sourcing crude from the South American nation and possess the capability to process its heavy crude. Puri met with Venezuela's Acting President Delcy Eloína Rodríguez Gómez during her recent visit to India, where they discussed opportunities for building a lasting energy partnership. Indian companies have expressed keenness to deepen their presence and energy trade with Venezuela, despite some outstanding financial matters.