India is the 4th largest refiner in the world with 23 refineries. According to India’s Ministry of Petroleum and Natural Gas, domestic crude oil production stands at approximately 28 million metric tons (MMT), while annual consumption of petroleum products continues to grow alongside national economic expansion.
The oil and gas industry can be divided into two major sectors:
- Upstream sector – search for and drilling of potential crude oil and natural gas reservoirs
- Downstream sector – refining process of crude oil and natural gas for consumption
Crude oil imports fulfill over 88% of India’s oil consumption. As the world’s third-largest oil importer and consumer, India sources crude from key international partners, including Saudi Arabia, the UAE, Iraq, Russia, and West African producers, to meet domestic energy demand.
In addition to meeting domestic needs, India exports refined petroleum products, including diesel, gasoline (petrol), aviation turbine fuel (ATF), fuel oil, and naphtha. To support distribution and foreign trade, the government continues to expand export-oriented logistics, marine terminals, and cross-country pipeline networks under the National Gas Grid and infrastructure initiatives.
Major Market Players
Reliance Industries Ltd. (RIL): Operates the world’s largest single-location refining complex in Jamnagar, Gujarat. Reliance partnered with BP to form Jio-bp (Reliance BP Mobility Limited), expanding its retail fuel network and deepwater gas block exploration in the Krishna Godavari (KG-D6) basin.
Nayara Energy (formerly Essar Oil): Acquired by Rosneft and an international investor consortium, Nayara Energy operates India’s second-largest private refinery in Vadinar, Gujarat (20 MMTPA), along with a nationwide retail fuel network of thousands of stations.
Cairn Oil & Gas (Vedanta Limited): The largest private producer of crude oil in India, operating the primary onshore Rajasthan block (Barmer) along with offshore assets in Andhra Pradesh and Gujarat.
Shell: Shell operates a growing network of retail fuel stations across India, alongside lubricant plants, bitumen facilities, and the Hazira LNG import terminal in Gujarat.
To encourage foreign investment, the Indian government provides incentives including excise tax cuts and 100% tax deductible exploration and drilling costs. It also allows up to 100% foreign direct investment in the private sector for infrastructural expansion, exploration of oil fields, marketing of petroleum products, and petroleum refining.
Last updated: August 4th, 2026
