India's Refining Capacity to Reach 309.5 MMTPA by 2028
India's refining capacity is set to increase to 309.5 million metric tonnes per annum (MMTPA) by 2028, as announced by Suresh Gopi, Minister of State in the Ministry of Petroleum and Natural Gas, in a written reply to the Rajya Sabha. This marks a substantial rise from the current capacity of 256.8 MMTPA, alongside a domestic petroleum product consumption of 233.3 MMTPA for the fiscal year 2023-24.
The Ministry of Statistics and Programme Implementation (MoSPI) reported a significant rise in the Gross Value Addition (GVA) of manufacturing coke and refined petroleum products, which grew from â¹1.56 lakh crore in 2012-13 to Rs 2.12 lakh crore in 2022-23. This growth has played a pivotal role in boosting India’s GDP, which surged from Rs 99.44 lakh crore to Rs 269.49 lakh crore during the same period, calculated at current prices.
Suresh Gopi emphasized the considerable expansion in India’s refining capacity over the past decade, increasing from 215.1 MMTPA to 256.8 MMTPA. This growth aligns with the government’s strategic initiatives towards energy transition, including the adoption of Compressed Natural Gas (CNG), biofuels such as ethanol, and the promotion of electric vehicles (EVs).
Refineries across India are continuously upgrading their technologies to enhance refining quality. Since April 1, 2020, the distribution of BS-VI auto fuel has been implemented, with all retail outlets of Oil Marketing Companies (OMCs) supplying BS-VI motor spirit (MS) and high-speed diesel (HSD) nationwide.
"The projected refining capacity is expected to adequately meet the anticipated demand based on the long-term growth trends in the consumption of petrol and diesel", stated Gopi.
The petroleum sector's increased GVA has had a significant impact on India's GDP, underscoring the sector's critical role in the nation's economic framework.
