India's Oil and Gas Sector: Comprehensive Industry Analysis Report | Scrolls
- Editor
- Sep 8
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by KarNivesh | 07 September, 2025
Overview of India’s Oil and Gas Sector
India’s oil and gas sector is one of the most strategically important industries, valued at ₹62,721 crores in 2024 and projected to reach ₹1,02,743 crores by 2033, growing at a CAGR of 5.23%. Serving over 67 million customers daily, the industry plays a central role in ensuring India’s energy security.
The sector is built around three integrated segments: upstream (exploration and production), midstream (transport and storage), and downstream (refining and marketing). India possesses an estimated 28.1 billion barrels of oil equivalent reserves, yet domestic production meets only 12% of demand, leaving a heavy import dependency of nearly 89%.
India’s midstream network includes 34,575 km of pipelines, 8 LNG terminals with 52.7 MMTPA regasification capacity, and strategic petroleum reserves covering 12 days of imports. On the downstream front, India is the world’s fourth-largest refiner, operating 23 refineries with a combined capacity of 258.1 MMTPA and nearly 94,000 retail outlets nationwide.
Market Dynamics
India consumed 5.57 million barrels of petroleum per day in 2024, making it the world’s third-largest consumer. Demand is expected to touch 8.17 million barrels per day by 2034, fueled by urbanization, industrial expansion, and strong GDP growth. Natural gas consumption is projected to rise 60% by 2030, with the government targeting an increase in its share of the energy mix from 6% to 15%.
Competitive Landscape
The sector is dominated by public sector undertakings (PSUs) like Indian Oil Corporation (IOC), which holds a 38% market share with 70.25 MMTPA refining capacity and over 35,500 retail outlets. BPCL and HPCL control 22% and 18% shares, respectively. Reliance Industries, with the world’s largest refining complex at Jamnagar (68.20 MMTPA), maintains a significant presence and is diversifying into renewables.
Future Outlook
India’s oil and gas sector will continue growing in the short term, with petroleum demand maintaining strong momentum. By 2030, the focus will shift toward natural gas expansion, green hydrogen, and renewable integration, transforming companies into integrated energy providers. Long-term strategies will revolve around decarbonization, digital innovation, and global competitiveness.
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