# Oil and gas industry in India
The oil and gas industry in India is the sector covering exploration and production of crude oil and natural gas, refining, pipeline transport, and the marketing of petroleum products, organized under the Ministry of Petroleum and Natural Gas. India is the world's fourth largest refiner, with an installed capacity of 258.1 million tonnes per annum across 22 operational refineries as of 1 April 2025, and it is one of the largest exporters of refined products globally.[1](https://www.cht.gov.in/refineries) • [2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2266034&lang=1®=1) At the same time it imports close to 88.2 percent of the crude oil it consumes, making import dependence the sector's central policy problem.[3](https://www.pib.gov.in/FactsheetDetails.aspx?Id=150699&lang=1®=3+)
| Key fact | Detail |
|---|---|
| Refining capacity | 258.1 million tonnes per annum across 22 operational refineries as of 01.04.2025; India is the world's fourth largest refiner[1](https://www.cht.gov.in/refineries) • [2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2266034&lang=1®=1) |
| Capacity growth | Refining capacity rose from 215.066 MMTPA in April 2014 to 256.816 MMTPA in April 2024[4](https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=153705&lang=2®=48) |
| Domestic output | Crude oil production 29.4 MMT and natural gas production 36.44 BCM in FY 2023-24 (provisional)[5](https://dghindia.gov.in/assets/downloads/ar/2023-24) |
| Import dependence | About 88.2% of consumed crude oil is imported; natural gas import dependence was 51.5% in Apr-Sep 2024-25[3](https://www.pib.gov.in/FactsheetDetails.aspx?Id=150699&lang=1®=3+) • [6](https://ppac.gov.in/download.php?file=rep_studies%2F1733114272_Ready+Reckoner_H1_FY+2024-25_Final.pdf) |
| Trade balance | Consumption of 243.2 MMT and petroleum product exports of 61.5 MMT in FY 2025-26[2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2266034&lang=1®=1) |
| Largest refinery complex | Reliance's Jamnagar complex: 33.00 MMTPA (DTA) plus 35.20 MMTPA (SEZ)[1](https://www.cht.gov.in/refineries) |
| Ethanol blending | 20% ethanol in petrol achieved in 2025-26, five years ahead of the original 2030 target[3](https://www.pib.gov.in/FactsheetDetails.aspx?Id=150699&lang=1®=3+) |
## History
The industry traces its start to 1867, when the first oil well was drilled at Digboi in Assam. Commercial-scale crude production at Digboi began in 1889, and the refinery there was commissioned in 1901; Digboi is recognized as the world's oldest continuously operating commercial refinery.[4](https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=153705&lang=2®=48) • [7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2313602&lang=2®=48) At independence in 1947 India had just one small refinery, of half a million metric tonnes capacity, at Digboi.[8](https://www.pib.gov.in/newsite/erelcontent.aspx?lang=2®=48&relid=68698)
The state built the institutional core in the 1950s: the Oil and Natural Gas Commission was established in 1956 and became a statutory body, and the [Indian Oil Corporation](https://www.edgepedia.org/indian-oil-corporation) was founded in 1959, giving refining and distribution a structured national operator.[5](https://dghindia.gov.in/assets/downloads/ar/2023-24) • [4](https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=153705&lang=2®=48) Until the end of the 1970s, exploration licenses went to the two national oil companies, ONGC and Oil India Ltd, on a nomination basis, and exploration stayed largely onshore and in shallow offshore waters. From 1979 the government offered exploration blocks to private and foreign bidders in Pre-NELP rounds, and from 1997 the New Exploration Licensing Policy ran nine bidding rounds covering 254 exploratory blocks. Since 2016 the sector has moved to a revenue-sharing model under the Hydrocarbon Exploration and Licensing Policy, with Open Acreage Licensing Policy bid rounds running from OALP-I in 2018 through OALP-IX.[5](https://dghindia.gov.in/assets/downloads/ar/2023-24)
## Upstream production
India produced 29.36 MMT of crude oil and 36.44 BCM of natural gas in FY 2023-24, both provisional figures reported by the Directorate General of Hydrocarbons, alongside an accretion of 14.2 MMT of oil reserves and 35.6 BCM of gas reserves.[5](https://dghindia.gov.in/assets/downloads/ar/2023-24) Domestic crude output has been broadly flat or declining: production fell from 30.5 MMT in 2020-21 to 29.4 MMT in 2023-24, while consumption of petroleum products rose over the same period from 194.3 MMT to 234.3 MMT.[6](https://ppac.gov.in/download.php?file=rep_studies%2F1733114272_Ready+Reckoner_H1_FY+2024-25_Final.pdf)
**Who produces.** National oil companies produced 78 percent of India's oil in 2023, with joint venture and private companies responsible for the remaining 22 percent. Crude and condensate production dropped to 604,000 barrels per day in 2023, the lowest since 1993, attributed to weather-related disruptions and maturing fields.[9](https://www.eia.gov/international/content/analysis/countries_long/india/) Assam contributes about 14 percent of national crude oil production and about 10 percent of natural gas production.[10](https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1982497&lang=2®=48)
## Refining
Refining is the sector's strongest link. Capacity grew from 215.066 MMTPA in April 2014 to 256.816 MMTPA in April 2024, and stood at 258.1 MMTPA across 22 operational refineries on 1 April 2025.[4](https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=153705&lang=2®=48) • [1](https://www.cht.gov.in/refineries) The fleet splits into nineteen public-sector refineries, three private-sector refineries, and one joint venture refinery.[4](https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=153705&lang=2®=48) IndianOil alone operates ten refinery groups with 80.75 MMTPA, nearly 31 percent of the national total.[7](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2313602&lang=2®=48)
The largest single complex is [Reliance Industries](https://www.edgepedia.org/reliance-industries)' Jamnagar site in Gujarat, with 33.00 MMTPA in the domestic tariff area and 35.20 MMTPA in the special economic zone, followed by Nayara Energy's 20.00 MMTPA refinery, also at Jamnagar.[1](https://www.cht.gov.in/refineries) In barrel terms India held the second-most refining capacity in Asia, just under 5.2 million b/d in 2024, and projects slated to come online by 2030 would add 808,000 b/d, led by Panipat (200,000 b/d), Nagapattinam (182,000 b/d), and Barmer (181,000 b/d).[9](https://www.eia.gov/international/content/analysis/countries_long/india/)
Because capacity exceeds domestic demand, India is a net exporter of petroleum products. In FY 2025-26 consumption was 243.2 MMT against exports of 61.5 MMT.[2](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2266034&lang=1®=1) Transportation fuels accounted for 84 percent of product exports in 2023, with the Asia Pacific region taking 28 percent of exports by destination region.[9](https://www.eia.gov/international/content/analysis/countries_long/india/)
## Imports and energy security
**Crude imports dominate the trade account.** India imported 4.5 million b/d of crude oil and condensate in 2023, a record, making it the second-highest net crude importer in the world. Import dependency based on consumption was 87.7 percent in 2023-24 and 88.2 percent in April-September 2024-25.[9](https://www.eia.gov/international/content/analysis/countries_long/india/) • [6](https://ppac.gov.in/download.php?file=rep_studies%2F1733114272_Ready+Reckoner_H1_FY+2024-25_Final.pdf) Crude oil imports cost $133.4 billion in 2023-24, and gross petroleum imports equaled 23.0 percent of India's total imports by value that year.[6](https://ppac.gov.in/download.php?file=rep_studies%2F1733114272_Ready+Reckoner_H1_FY+2024-25_Final.pdf)
The source mix shifted sharply after 2022. Russia supplied about 39 percent of India's crude imports in 2023, up from a 2.5 percent share in 2021; imports from Russia more than doubled in 2023 to almost 1.8 million b/d as [India](https://www.edgepedia.org/india) bought discounted Russian crude after sanctions, displacing Middle Eastern suppliers, whose share fell to about 45 percent.[9](https://www.eia.gov/international/content/analysis/countries_long/india/)
India also holds strategic petroleum reserves. Total petroleum storage capacity, including reserves and refinery inventories, was 74 days of net imports at the end of 2023, against the [International Energy Agency](https://www.edgepedia.org/international-energy-agency)'s recommended minimum of 90 days; plans include three new reserve sites with a combined 39 million barrels and expansions adding another 48 million barrels.[9](https://www.eia.gov/international/content/analysis/countries_long/india/)
## Natural gas
[Natural gas](https://www.edgepedia.org/natural-gas) production reached over 1.2 Tcf in 2023, the highest since 2012 and the third straight year of growth, with 68 percent of FY 2022-23 output coming from offshore fields.[9](https://www.eia.gov/international/content/analysis/countries_long/india/) Gross production was 36,438 MMSCM in FY 2023-24.[6](https://ppac.gov.in/download.php?file=rep_studies%2F1733114272_Ready+Reckoner_H1_FY+2024-25_Final.pdf) Because domestic supply falls short, India imported 1.1 Tcf of LNG in 2023, the fourth-largest LNG import volume in the world, and import dependence was 51.5 percent in April-September 2024-25.[9](https://www.eia.gov/international/content/analysis/countries_long/india/) • [6](https://ppac.gov.in/download.php?file=rep_studies%2F1733114272_Ready+Reckoner_H1_FY+2024-25_Final.pdf) The industrial sector, led by fertilizer production, accounted for 67 percent of gas consumption in 2023.[9](https://www.eia.gov/international/content/analysis/countries_long/india/)
Infrastructure is expanding. The operational natural gas pipeline network grew from 15,340 km in 2014 to 24,945 km as of 30 September 2024, with about 10,805 km more under execution, and a unified pipeline tariff of Rs. 80.97/MMBtu took effect on 1 July 2024.[11](https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=2090844&lang=2®=48) [Regasification](https://www.edgepedia.org/regasification) capacity of 2.1 Tcf in 2023 was the fifth highest globally, with nine terminals under development that could lift capacity to close to 4.0 Tcf by the end of 2026.[9](https://www.eia.gov/international/content/analysis/countries_long/india/)
## Demand substitution and biofuels
To reduce import dependence, the government pursues a five-part strategy: increasing domestic production, adopting biofuels and renewables, setting energy-efficiency norms, improving refinery processes, and demand substitution.[12](https://iea-amf.org/content/publications/country_reports/india) The Ethanol Blended Petrol Programme is the flagship: blending rose from 1.53 percent in 2013-14 to 20 percent in 2025-26, reaching the E20 target five years ahead of the original 2030 date, and by January 2025 almost all retail outlets sold E20 fuel.[3](https://www.pib.gov.in/FactsheetDetails.aspx?Id=150699&lang=1®=3+) • [13](https://iea-amf.com/app/webroot/files/file/Annual%20Reports/AMF%20Annual%20Report%202024_FINAL_06192025.pdf) The government estimates the blending program saved over $12 billion in oil imports over the decade to 2025.[14](https://apnews.com/article/069776a758cd22d037866b8701df6d9a) [Compressed biogas](https://www.edgepedia.org/compressed-biogas) is being phased into city gas networks under the CBG Obligation, voluntary through FY 2024-25 and mandatory from FY 2025-26 at 1 percent of CNG/PNG consumption, rising to 5 percent from 2028-29.[11](https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=2090844&lang=2®=48)
## References
1. [Current Refining Capacity in India as on 01.04.2025, Centre for High Technology, Ministry of Petroleum & Natural Gas](https://www.cht.gov.in/refineries)
2. [India's refining surplus capacity ensures full domestic supply of Petrol and Diesel, Press Information Bureau, 27 May 2026](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2266034&lang=1®=1)
3. [Ethanol Blended Petrol Programme factsheet, Press Information Bureau](https://www.pib.gov.in/FactsheetDetails.aspx?Id=150699&lang=1®=3+)
4. [India's Petroleum Industry: Fueling Growth and Innovation, Press Information Bureau, 27 January 2025](https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=153705&lang=2®=48)
5. [India's Hydrocarbon Outlook 2024, Directorate General of Hydrocarbons](https://dghindia.gov.in/assets/downloads/ar/2023-24)
6. [India's Oil & Gas Ready Reckoner, H1 FY 2024-25, Petroleum Planning & Analysis Cell](https://ppac.gov.in/download.php?file=rep_studies%2F1733114272_Ready+Reckoner_H1_FY+2024-25_Final.pdf)
7. [Odisha Media Delegation Visits Historic Digboi Refinery, Press Information Bureau, 22 September 2026](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2313602&lang=2®=48)
8. [Speech of the Union Minister of Petroleum and Natural Gas at Haldia Refinery, Press Information Bureau](https://www.pib.gov.in/newsite/erelcontent.aspx?lang=2®=48&relid=68698)
9. [India country analysis, U.S. Energy Information Administration](https://www.eia.gov/international/content/analysis/countries_long/india/)
10. [2G Refinery at Numaligarh press release, Press Information Bureau, 4 December 2023](https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1982497&lang=2®=48)
11. [Year End Review 2024, Ministry of Petroleum and Natural Gas, Press Information Bureau](https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=2090844&lang=2®=48)
12. [India country report, IEA Advanced Motor Fuels](https://iea-amf.org/content/publications/country_reports/india)
13. [IEA Advanced Motor Fuels Annual Report 2024, India chapter](https://iea-amf.com/app/webroot/files/file/Annual%20Reports/AMF%20Annual%20Report%202024_FINAL_06192025.pdf)
14. [Biofuel pledge at climate summit highlights India's ethanol blending debate, Associated Press](https://apnews.com/article/069776a758cd22d037866b8701df6d9a)
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*Topic: Encyclopedia › Technology and the built world › Energy technology › Oil industry*
*Initially written Sep 17, 2026 · Reviewed: Sep 30, 2026; Oct 15, 2026 · Edited: Sep 30, 2026; Oct 15, 2026 · Last review: Oct 15, 2026*
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