The India petroleum market attained a volume of 5.57 MB/d in 2024. The industry is expected to grow at a CAGR of 3.90% during the forecast period of 2025-2034. Increasing industrial automation and mechanization in agriculture and manufacturing sectors are driving demand for petroleum-based fuels and lubricants. The overall petroleum consumption in the commercial and industrial segments across India have increased at a rapid pace. In turn, all these factors have resulted in the market attaining a volume of 8.17 MB/d by 2034.
India Petroleum Market Report Summary
Description
Value
Base Year
MB/d
2024
Historical Period
MB/d
2018-2024
Forecast Period
MB/d
2025-2034
Market Size 2024
MB/d
5.57
Market Size 2034
MB/d
8.17
CAGR 2018-2024
Percentage
XX%
CAGR 2025-2034
Percentage
3.90%
CAGR 2025-2034 - Market by Region
West India
4.4%
CAGR 2025-2034 - Market by Region
East India
4.2%
CAGR 2025-2034 - Market by Type
Sweet
4.6%
CAGR 2025-2034 - Market by Location
Offshore
4.7%
2024 Market Share by Region
East India
19.8%
India Petroleum Market Overview
Major drivers of the India petroleum market growth include the rising energy demand with growing urbanization and expanding transport and industrial sectors. Emerging trends in the market include diversifying into petrochemicals, record crude imports, and shifting policies to encourage the use of cleaner fuels such as natural gas and biofuels. The government's efforts for deregulation and push for energy security are contributing to the transformation of the market dynamics. Well-known players like Indian Oil, Reliance Industries, and Bharat Petroleum are channeling resources to increase their capacity, integrate upstream operations, and build a larger retail network. With India aiming for a USD 5 trillion economy, the petroleum industry presents great opportunities for innovation, investment, and strategic B2B partnerships along the value chain.
India Petroleum Market Growth
Two significant domains that are sustaining the demand in the India petroleum market are aviation turbine fuel (ATF) and marine bunkering fuels. The revival of domestic and international air travel coupled with the push for enhanced regional air connectivity by the government-imposed UDAN scheme, is resulting in increased ATF demand across airports. Meanwhile, the SagarMala project is enhancing marine fuel consumption under coastal and inland waterways, especially low-sulfur fuels complying with IMO 2020 norm. These niches are attracting investments targeting storage and distribution infrastructure. This has led to further high-margin opportunities for oil marketing companies and private players to diversify away from conventional retail and industrial petroleum segments.
Key Trends and Recent Developments
The key trends of the India petroleum market include the growing shift towards natural has as a cleaner fuel, privatization and market liberalization, petrochemical integration with refining operations, and technological modernization across the value chain.
May 2025
Shell Plc announced that the company is working with consultants to study a potential takeover of BP Plc, but it is waiting for more stock and oil price falls before deciding whether to launch a deal.
May 2025
Saudi Aramco is expected to acquire a 20% stake in two new refineries planned by state-owned businesses Oil and Natural Gas Corp (ONGC) and Bharat Petroleum Corp (BPCL). The plan comes as Saudi Arabia, the world's largest oil exporter, seeks a reliable outlet for its crude in the world's fastest-growing emerging market.
February 2025
Oil and Natural Gas Corporation Limited (ONGC) and BP signed a contract in which BP would function as the Technical Services Provider (TSP) for the Mumbai High field, India's largest and most productive offshore oil field.
May 2024
The state-run Indian Oil Corporation Limited (IOCL) acquired Mercator Petroleum Limited (MPL) for Rs 154 crore.
Growing Shift Towards Natural Gas as a Cleaner Fuel
The country is aggressively shifting towards natural gas as an intermediate fuel in order to reduce its carbon footprint and align with international climate pledges, boosting the India petroleum market development. The government seeks to raise the natural gas portion in the energy mix to 15% by 2030 from 6%. This has resulted in massive investment in LNG terminals, city gas distribution, and pipeline networks. For instance, GAIL and Adani Total Gas are expanding city gas distribution in specific tier-2 and tier-3 cities, thus enabling access to cleaner energy.
Privatization and Market Liberalization
The government is actively liberalizing the petroleum sector for better efficiency and to attract private investments, further reshaping the India petroleum market dynamics. Strategic disinvestments such as BPCL's suggested privatization have made a space for private players in the refining and retail business. Reliance Industries has launched Jio-BP with BP's collaboration for increased retail fuel outlets and charging stations for electric vehicles. Thus, this trend leads to greater competition, improved service quality, and technologically driven consumer engagement in the downstream segment.
Petrochemical Integration with Refining Operations
In order to maximize margins while reducing dependency on transport fuels, refiners are integrating petrochemical production into their operations, stimulating the India petroleum market revenue. Such a move is in response to the growing requirement for plastics, packaging, and synthetic materials in consumer and industrial applications. For instance, Indian Oil Corporation is setting up integrated refinery-petrochemical complexes in Paradip and Gujarat. This emerging trend helps increase profits for companies who target the ever-increasing domestic and export demand for high-value petrochemical products.
Technological Modernization Across the Value Chain
The rapid adoption of technology in exploration, refining, and distribution is accelerating the India petroleum market value. AI and seismic imaging are being used for better resource discovery by upstream companies, while downstream players are using IoT, and blockchain to enhance refinery efficiency and supply chain transparency. For example, ONGC is using advanced analytics for its offshore drilling, and HPCL is implementing AI for fuel demand forecasting. This digital transformation is opening scopes for cost optimization, predictive maintenance, and real-time decision-making in an otherwise manual industry.
India Petroleum Market Trends
Two major drivers in the India petroleum market revenue growth are rural energy access and increasing vehicle ownership. Demand for two-wheelers, cars, and commercial vehicles is surging with the increasing middle-class population and better infrastructure. This upsurge is driving consumption of petrol and diesel. Moreover, government initiatives such as PMUY (Pradhan Mantri Ujjwala Yojana) are raising LPG penetration in rural markets, significantly broadening the domestic fuel consumer base. These structural shifts are generating a bigger, more enduring demand curve for petroleum products across the urban and rural segments, thus supporting market stability and growth in the long term.
India Petroleum Market Opportunities
Companies in the India petroleum market witness two major opportunities in biofuels and lubricants. Mandates for fueling ethanol blending (20% by 2030) and biodiesel adoption allow companies to invest in bio-refineries and supply chains for agricultural feed stock. While the growing automotive and industrial base is increasing the demand for high-performance lubricants across sectors like mining, manufacturing, and logistics. Initiating innovations among synthetic lubricants and environment-friendly additives can benefit these firms. In addition, companies can offer high-scoring parameters extending beyond the conventional fuel sale, thus helping to create diversification and long-term sustainable goals.
India Petroleum Market Restraints
- Dependence upon imported crude oil makes the country vulnerable to the fluctuations of international prices, geopolitical tensions, interruptions in its supply chain that can affect pricing stability and energy security. Thus, this factor poses a serious challenge to the India petroleum market growth.
- Stricter environmental regulations and pressure from increasing sustainability have pushed traditional petroleum companies to make large investments in developing cleaner technologies. This results in adverse effects on profitability and capital while complying with worldwide environmental standards.
The EMR’s report titled “India Petroleum Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
- Heavy
- Light
- Sweet
- Sour
- Onshore
- Offshore
- North India
- East India
- South India
- West India
Market Insights by Type
Current market dynamics indicate that the India petroleum market continues to experience its demands along different crude oil types including heavy, light, sweet, and sour. Refinery configurations coupled with ever-changing fuel quality norms determine how each of these categories performs in the market. Currently, light and sweet crude types are in demand due to lower Sulphur levels that enable their transformation into cleaner fuels at a lesser cost, while meeting the demands of stringent environmental regulations. Heavy and sour crudes are, however, still sourced from large imports, especially from the Middle East. India's strategy is to diversify its crude sources to obtain a balance among cost, refining flexibility, and quality of products in a volatile, dynamic global oil market.
Market Analysis by Location
In terms of the India petroleum market shares, onshore production dominates as established fields in Assam, Gujarat, and Rajasthan are used. Onshore activities offer easy access and cheaper extraction costs. Furthermore, onshore locations have a consistent output through redevelopment and improved oil recovery. However, offshore exploration, particularly in the Krishna-Godavari and Mumbai High basins, is gaining momentum with advanced drilling technologies. The segment is further expected to grow at 4.7% CAGR over the forecast period, contributed by large investments made by ONGC and other private players. The domestic configuration presently witnesses a growing demand for energy and import reliance, pointing towards the significance of offshore fields.
India Petroleum Market Regional Analysis
CAGR 2025-2034 - Market by
Region
West India
4.4%
East India
4.2%
North India
XX%
South India
XX%
North India Petroleum Market Opportunities
A large population, industrial growth, and significant transportation infrastructure fuel the petroleum demand in North India. Heavy consumption in the cities of Delhi, Chandigarh, and Amritsar is due to the increasing vehicle ownership and urbanization. In addition, logistics and infrastructural activities in the region drive the demand for fuel, particularly for freight and construction.
East India Petroleum Market Insights
The East India petroleum market observes heavy demand, supported by the development of industrial clusters in steel, coal, and mining in the states of Odisha, Jharkhand, and West Bengal. The market is expected to grow at a CAGR of 4.2% over the forecast period. Furthermore, growing rural penetration of LPG and growth in transportation network have given a major push to fuel consumption in this particular region.
South India Petroleum Market Growth
Booming car industries and healthy industrial bases in the states like Tamil Nadu, Karnataka, and Telangana contribute to the strong growth of the South India petroleum market. The region is also a major consumer of refined products as well as petrochemicals. High ownership rates of vehicles and important port cities like Chennai and Kochi bring an increase in demand for automobile as well as marine fuels.
West India Petroleum Market Outlook
Demand in the West India petroleum market is boosted by states such as Maharashtra, Gujarat, and Rajasthan, due to industrial and commercial development. The market is expected to grow at a CAGR of 4.4% over the forecast period. As the capital for finance, Mumbai largely accelerates fuel consumption across sectors such as aviation and retail. Refining capacity in Gujarat also fuels demand for petroleum products, both for domestic and export, further raising the region's strategic value in India's energy scenario.
Competitive Landscape
The India petroleum market players are focusing on altering sites, expanding refining capacity, and diversifying crude sourcing. Most of the India petroleum companies are concentrating on digital transformation, retail network development, and critical strategic partnerships aimed at further enhancing their efficiencies, profitability, and future energy security.
Indian Oil Corporation Ltd (IOCL)
Formed in 1959, and headquartered at New Delhi, Indian Oil Corporation Ltd (IOCL) is India's largest refiner and marketer of petroleum products. The company has emerged to be the central player in meeting the country's energy requirements, with a wide-ranging infrastructure across the entire range of refining, pipelines, and retail.
Oil and Natural Gas Corporation Ltd (ONGC)
Established in 1956, Oil and Natural Gas Corporation Ltd (ONGC) is the largest exploration and production company. ONGC makes a major contribution to India's crude oil and natural gas production in both onshore and offshore locations.
Bharat Petroleum Corporation Ltd (BPCL)
Headquartered in Mumbai, Bharat Petroleum Corporation Ltd (BPCL) is one of the leading players in the Indian petroleum industry. The company encompasses refining, distribution, and marketing of petroleum products with a focus on both domestic expansion and global expansion strategy.
GAIL (India) Limited
Founded in 1984, GAIL (India) Limited largely focuses on the production of petrochemicals. The company leverages the advantage of extensive pipeline networks while supporting the country's increasing energy demand.
Other key players in the India petroleum market report are Hindustan Petroleum Corporation Limited, Cairn Oil & Gas, Essar, Reliance Industries Ltd, Petronet LNG Limited, and Shell, among others.
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Regions/Countries
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 Asia Pacific Petroleum Market Overview
- 5.1 Key Industry Highlights
- 5.2 Asia Pacific Petroleum Historical Market (2018-2024)
- 5.3 Asia Pacific Petroleum Market Forecast (2025-2034)
- 6 India Petroleum Market Analysis
- 6.1 Key Industry Highlights
- 6.2 India Petroleum Historical Market (2018-2024)
- 6.3 India Petroleum Market Forecast (2025-2034)
- 6.4 India Petroleum Market by Type
- 6.4.1 Heavy
- 6.4.1.1 Historical Trend (2018-2024)
- 6.4.1.2 Forecast Trend (2025-2034)
- 6.4.2 Light
- 6.4.2.1 Historical Trend (2018-2024)
- 6.4.2.2 Forecast Trend (2025-2034)
- 6.4.3 Sweet
- 6.4.3.1 Historical Trend (2018-2024)
- 6.4.3.2 Forecast Trend (2025-2034)
- 6.4.4 Sour
- 6.4.4.1 Historical Trend (2018-2024)
- 6.4.4.2 Forecast Trend (2025-2034)
- 6.5 India Petroleum Market by Location
- 6.5.1 Onshore
- 6.5.1.1 Historical Trend (2018-2024)
- 6.5.1.2 Forecast Trend (2025-2034)
- 6.5.2 Offshore
- 6.5.2.1 Historical Trend (2018-2024)
- 6.5.2.2 Forecast Trend (2025-2034)
- 6.6 India Petroleum Market by Region
- 6.6.1 North India
- 6.6.1.1 Historical Trend (2018-2024)
- 6.6.1.2 Forecast Trend (2025-2034)
- 6.6.2 East India
- 6.6.2.1 Historical Trend (2018-2024)
- 6.6.2.2 Forecast Trend (2025-2034)
- 6.6.3 South India
- 6.6.3.1 Historical Trend (2018-2024)
- 6.6.3.2 Forecast Trend (2025-2034)
- 6.6.4 West India
- 6.6.4.1 Historical Trend (2018-2024)
- 6.6.4.2 Forecast Trend (2025-2034)
- 7 Market Dynamics
- 7.1 SWOT Analysis
- 7.1.1 Strengths
- 7.1.2 Weaknesses
- 7.1.3 Opportunities
- 7.1.4 Threats
- 7.2 Porter’s Five Forces Analysis
- 7.2.1 Supplier’s Power
- 7.2.2 Buyer’s Power
- 7.2.3 Threat of New Entrants
- 7.2.4 Degree of Rivalry
- 7.2.5 Threat of Substitutes
- 7.3 Key Indicators of Demand
- 7.4 Key Indicators of Price
- 8 Value Chain Analysis
- 8.1 Key Stakeholders
- 8.2 Stages in the Value Chain
- 9 India Trade Dynamics
- 9.1 India Imports and Exports by Country in terms of Volume
- 9.2 India Imports and Exports by Country in terms of Value
- 10 India Price Analysis
- 10.1 Annual Historical Price Trends (2018-2024)
- 10.2 Annual Price Forecast Trends (2025-2034)
- 11 Procurement Insights
- 11.1 Contract Terms
- 11.2 Cost Structure
- 11.2.1 Raw Material
- 11.2.2 Utility
- 11.2.3 Labour Cost
- 11.2.4 Fixed Cost
- 11.2.5 Pricing Model
- 11.3 Vendor Selection Criteria
- 11.4 Supplier and Buyer Power at Regional Level
- 11.4.1 Demand
- 11.4.2 Supply
- 11.4.3 Raw Material/Feedstock Availability
- 11.4.4 Supplier Power
- 11.4.5 Buyer Power
- 11.5 Procurement Strategy: Best Practices
- 12 Competitive Landscape
- 12.1 Supplier Selection
- 12.2 Key Global Players
- 12.3 Key Local Players
- 12.4 Key Player Strategies
- 12.5 Company Profile
- 12.5.1 Indian Oil Corporation Ltd
- 12.5.1.1 Company Overview
- 12.5.1.2 Product Portfolio
- 12.5.1.3 Demographic Reach and Achievements
- 12.5.1.4 Certifications
- 12.5.2 Oil and Natural Gas Corporation Limited
- 12.5.2.1 Company Overview
- 12.5.2.2 Product Portfolio
- 12.5.2.3 Demographic Reach and Achievements
- 12.5.2.4 Certifications
- 12.5.3 Bharat Petroleum Corporation Ltd
- 12.5.3.1 Company Overview
- 12.5.3.2 Product Portfolio
- 12.5.3.3 Demographic Reach and Achievements
- 12.5.3.4 Certifications
- 12.5.4 GAIL (India) Limited
- 12.5.4.1 Company Overview
- 12.5.4.2 Product Portfolio
- 12.5.4.3 Demographic Reach and Achievements
- 12.5.4.4 Certifications
- 12.5.5 Hindustan Petroleum Corporation Limited
- 12.5.5.1 Company Overview
- 12.5.5.2 Product Portfolio
- 12.5.5.3 Demographic Reach and Achievements
- 12.5.5.4 Certifications
- 12.5.6 Cairn Oil & Gas
- 12.5.6.1 Company Overview
- 12.5.6.2 Product Portfolio
- 12.5.6.3 Demographic Reach and Achievements
- 12.5.6.4 Certifications
- 12.5.7 Essar
- 12.5.7.1 Company Overview
- 12.5.7.2 Product Portfolio
- 12.5.7.3 Demographic Reach and Achievements
- 12.5.7.4 Certifications
- 12.5.8 Reliance Industries Ltd
- 12.5.8.1 Company Overview
- 12.5.8.2 Product Portfolio
- 12.5.8.3 Demographic Reach and Achievements
- 12.5.8.4 Certifications
- 12.5.9 Petronet LNG Limited
- 12.5.9.1 Company Overview
- 12.5.9.2 Product Portfolio
- 12.5.9.3 Demographic Reach and Achievements
- 12.5.9.4 Certifications
- 12.5.10 Shell
- 12.5.10.1 Company Overview
- 12.5.10.2 Product Portfolio
- 12.5.10.3 Demographic Reach and Achievements
- 12.5.10.4 Certifications
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