India poised to become second-largest oil refiner by 2035: Hardeep Singh Puri

Union Petroleum and Natural Gas Minister Hardeep Singh Puri
| Photo Credit:
ANI

Union Petroleum and Natural Gas Minister Hardeep Singh Puri has said that the country could emerge as the second-largest refiner by 2035, as 100 refineries are expected to close down.

“We will definitely go from the fourth to the third. We may end up with the second-largest refining sector in the world,” he said.

Besides export opportunities, the country’s domestic consumption is growing significantly.

Four years ago, the International Energy Agency (IEA) had estimated that 25 per cent of the increase in global demand over the next two decades would come from India. “

Four years later, the estimates say that India’s contribution would be 30 per cent. This is a clear reflection of how rapidly India’s energy landscape is evolving,” he said.

“Our energy mix is expanding — from petroleum and natural gas to biofuels, green hydrogen, and renewables — creating a diversified and resilient framework for the future,” he said.

Addressing the Energy Technology Meet here on Tuesday, he said the downturn in global refining capacity had created a significant opportunity. “As per reports, over 100 of the world’s 420 refineries, representing nearly 18.4 million barrels per day, or about 20 per cent of the global capacity, are at risk of closure within the next 7 to 10 years,” he said.

The three-day meet is being organised by the Union Ministry of Petroleum and Natural Gas and BPCL.

“India was well-positioned to capture this opportunity, as it was already a major exporter.

Today, we rank fourth in the world, exporting refined petroleum products to over 50 countries, valued at more than $45 billion last year. This growth reflects not only scale but also competitiveness and technological excellence,” he said.

The refining and petroleum sector contributes about 20 per cent of the country’s total revenue, underscoring its centrality to the economic framework. 

Capacity expansion

The country, currently with a capacity of 258 million tonnes a year, set a target of reaching 310 MMTPA by 2030. 

“The real ambition extends far beyond this official target,” he said, referring to the Prime Minister’s call for achieving 450 MMTPA.

Speaking about the rapid pace of India’s energy transition, the Minister highlighted the success of biofuel targets. He stated that after achieving the 10% blending target ahead of schedule, the government targeted the 20 per cent mark by 2030. “But we did it six years in advance,” he said.

He said that achieving ambitious objectives depends fundamentally on policy design and implementation.

“A good policy framework and a proper support system would help achieve even ambitious targets,” he said.

Published on October 28, 2025