IOCL Expansion Could Lift India's Petroleum Exports By 25%

India's petroleum product exports could rise by nearly 25% from the FY25 level of $44.4 billion over the next few years as Indian Oil Corporation's (IOCL) biggest refinery expansion nears completion by the end of 2026.

The state-run oil company is adding 17.3 million metric tonnes per annum (MMTPA) of refining capacity across three refineries. Once completed, IOCL's total refining capacity will increase to 98.05 MMTPA from 80.75 MMTPA currently.

At 3.09 PM, IOCL shares were up 0.54% on the National Stock Exchange of India (NSE).

₹75,000 Crore Expansion Underway

IOCL's ₹75,000 crore expansion programme has already seen more than ₹53,500 crore deployed. The projects cover three major refineries (see table):

All three expansion projects are scheduled to be commissioned between November and December 2026. After commissioning, the additional output is expected to be available for exports once domestic demand is met.

India Already Has A Strong Export Base

India's refining sector has an installed capacity of around 258.1 MMTPA, while annual domestic petroleum product consumption stands at about 239 MMTPA.

Indian refineries usually run above their nameplate capacity, operating at 105% to 115%. That pushes annual production to almost 300 million tonnes, leaving an export surplus of around 61.5 million tonnes after domestic demand is met.

Although India imports over 90% of the crude oil it consumes, it has built a strong presence in the global market for refined petroleum products. Crude sourced from overseas is processed at the country's large refining complexes and then supplied to both Indian consumers and buyers abroad.

Reliance Industries remains the biggest contributor to these exports. Its 70 MMTPA refinery at Jamnagar accounts for nearly 70% of India's refined fuel shipments.

Once IOCL brings 17.3 MMTPA of new refining capacity online by the end of 2026, more fuel could be available for exports, provided domestic demand does not consume the additional production.

Also Read - Kusumgar IPO Subscription Status Day 3: Issue Subscribed 14x So Far; NII Portion Booked Over 42 Times