India to Be Regional Refining Hub Until 2040: Oil Minister

India, the world's third-largest oil importer and consumer, is set to maintain its reliance on fossil fuels until at least 2040. This was confirmed by Oil Minister Hardeep Singh Puri, who spoke to Reuters on Tuesday at a refining conference in Bengaluru. 

With global refining centres shrinking amid the uncertain pace of energy transition, India’s growing crude utilization means fossil fuels will remain essential for the foreseeable future.

Puri emphasized that India plans to position itself as a regional refining hub. "Our existing refineries will increase in capacity and will also become regional hubs, supplying other countries," he said. The country’s refining capacity is expected to rise significantly, with discussions already underway to scale up production beyond the current 249 million metric tonnes per annum (mtpa), or roughly 5 million barrels per day (bpd). India aims to increase this by 81%, targeting 450 mtpa, though no timeline has been set.

Despite its commitment to achieving net zero carbon emissions by 2070 and a renewable energy target of 500 gigawatts (GW) by 2030, India’s role as a refining powerhouse remains central. Puri noted that smaller refineries will no longer be economically viable in this evolving landscape.

In line with this expansion, Bharat Petroleum Corp Ltd (BPCL) is exploring the possibility of building a new 180,000-300,000 bpd refinery in southern Andhra Pradesh or northern Uttar Pradesh. Meanwhile, Hindustan Petroleum Corp Ltd (HPCL) is expected to commence operations at its new 180,000 bpd Barmer refinery in Rajasthan by the end of this year or early next year.

India’s strategic focus on refining expansion underscores its continued reliance on fossil fuels in the near future while preparing for the long-term energy transition.