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Time of India
2 days ago
- Business
- Time of India
On slippery ground: Refining capacity rises just 5% in 7 years
India has added just 5 per cent to its refining capacity over the past seven years—a sharp contrast to the 69 per cent expansion originally planned by 2025. A mix of climate-related demand uncertainty, land constraints, and the pandemic has slowed progress, further deepening the country's dependence on energy imports. India's refining capacity was projected to rise from 245 million tonnes per annum (mtpa) in 2017-18 to 414 mtpa by 2025 and 439 mtpa by 2030, according to a 2018 report by an official panel of oil ministry officials and industry executives, which based its projection on 'firm plans' by refiners. The refining capacity, however, has risen to just 258 mtpa, according to oil ministry data. The major misses included the India-Saudi 60 mtpa greenfield joint venture project, Rosneft-backed Nayara Energy's 25 mtpa expansion, Reliance Industries' 7.5 mtpa addition, and Indian Oil's 34 mtpa target. The BPCL-NRL combined capacity expanded by 2 mtpa, compared to a projected 26.4 mtpa by 2025, while the HPCL-ONGC group achieved an 11 mtpa increase—the largest by any group—against its 23 mtpa target. Some expansion projects, including those by Indian Oil and HPCL, are under construction and expected to come online over the next few years. Indian Oil, HPCL, BPCL, RIL, and Nayara declined to comment. Slower expansion, coupled with surging domestic demand, has pushed up India's imports of petroleum products by 43 per cent in seven years to 2024-25, while exports have declined by 3 per cent in volume terms. B Ashok, former chairman of Indian Oil, says the uncertainty over the impact of energy transition policies, both domestically and globally, has 'made decision-makers more circumspect'. While acknowledging that refineries are 'high capex and high gestation projects', he warned that India needs fast-executed greenfield refinery projects to support its rapidly expanding economy. These projects, however, must incorporate new technologies to address green concerns and be backed by new risk-sharing models, he said. B Anand, former CEO of Nayara Energy and of the TCG Group's petrochemical business, also agrees that the shadow of transition looms over refinery growth. 'Globally, the refining growth story is diminishing. Access to new-age capital for hydrocarbons due to net zero concerns has reduced,' he said. Ashok added that climate efforts are generating competing demand for capital. 'With emphasis on transition and climate impact mitigation efforts, the capital requirements within the organisations are varied and stretched. These are also impacting the view of future refining projects,' said Ashok, who also led the India-Saudi joint venture project, which didn't take off primarily due to land constraints. Anand says India should focus on petrochemicals, as demand is expected to rise with rapid urbanisation and e-commerce. 'For India, building new refineries with so much crude import dependence is not a good idea. We should instead focus on investing in petrochemicals, which has a promising future,' he said.
Time of India
3 days ago
- Business
- Time of India
On slippery ground: Refining capacity rises just 5% in 7 years
India has added just 5% to its refining capacity over the past seven years-a sharp contrast to the 69% expansion originally planned by 2025. A mix of climate-related demand uncertainty , land constraints, and the pandemic has slowed progress, further deepening the country's dependence on energy imports. India's refining capacity was projected to rise from 245 million tonnes per annum (mtpa) in 2017-18 to 414 mtpa by 2025 and 439 mtpa by 2030, according to a 2018 report by an official panel of oil ministry officials and industry executives, which based its projection on "firm plans" by refiners. The refining capacity, however, has risen to just 258 mtpa, according to oil ministry data. The major misses included the India-Saudi 60 mtpa greenfield joint venture project, Rosneft-backed Nayara Energy's 25 mtpa expansion, Reliance Industries' 7.5 mtpa addition, and Indian Oil 's 34 mtpa target. The BPCL-NRL combined capacity expanded by 2 mtpa, compared to a projected 26.4 mtpa by 2025, while the HPCL-ONGC group achieved an 11 mtpa increase-the largest by any group-against its 23 mtpa target. Some expansion projects, including those by Indian Oil and HPCL , are under construction and expected to come online over the next few years. Indian Oil, HPCL, BPCL , RIL , and Nayara declined to comment. Live Events Slower expansion, coupled with surging domestic demand, has pushed up India's imports of petroleum products by 43% in seven years to 2024-25, while exports have declined by 3% in volume terms. B Ashok, former chairman of Indian Oil, says the uncertainty over the impact of energy transition policies, both domestically and globally, has "made decision-makers more circumspect". While acknowledging that refineries are "high capex and high gestation projects", he warned that India needs fast-executed greenfield refinery projects to support its rapidly expanding economy.
Economic Times
25-06-2025
- Business
- Economic Times
Adani Total Gas, Reliance's Jio-bp partner to offer each other's fuels in select outlets
In a move to improve fuel quality offerings, Adani Total Gas and Jio-bp, the fuel retail brand of Reliance BP Mobility, announced on Wednesday that they will begin offering each other's fuels in select outlets in India's fast-growing $150 billion fuel retail market. Under this partnership, select ATGL fuel outlets will offer Jiobp's liquid fuels (petrol and diesel), while select Jio-bp fuel outlets will integrate ATGL's CNG dispensing units, within ATGL's authorized Geographical Areas (GA), said Adani Total Gas through a stock exchange filing. 'Jio-bp has always been committed to delivering an exceptional customer experience, and this partnership allows us to leverage each other's strengths to further enhance the value we provide to India,' said Sarthak Behuria, Chairman, Jio-bp. 'It is our shared vision to provide complete range of high-quality fuels at our outlets. This partnership will enable us to leverage each other's infrastructure, thus enhancing customer experience and offerings,' said Suresh P Manglani, Executive Director and Chief Executive Officer, Adani Total Gas Ltd. Private retails gain share Private fuel retailers Reliance Industries and Rosneft-backed Nayara Energy are profiting from a market distortion created by state-run companies' refusal to cut pump prices, even as international fuel prices have fallen sharply. Reliance Industries and Nayara Energy are using these margins to undercut state-run firms by up to Rs 3 per litre, steadily eroding their market share in the retail petrol and diesel business, reported ET quoting industry executives. In April-May, the private sector's share of diesel sales increased to 11.5% from 9.6% a year earlier. In petrol, the share increased to 10% from 9%. At the same time, in the bulk diesel business, state-run and private suppliers were locked in a fierce battle, offering fuel at steep discounts to retail prices-highlighting just how much room there is to cut prices in a truly competitive market, according to executives. State-run Indian Oil Corporation regained significant share from private players in the bulk diesel segment during International Energy Agency expects India will become the largest source of global oil demand growth out to 2030, in contrast with China, where fuel demand may have already peaked.
Time of India
12-06-2025
- Business
- Time of India
Pvt fuel retailers gain mktshare as PSUs refuse to lower prices
Private fuel retailers Reliance Industries and Rosneft-backed Nayara Energy are profiting from a market distortion created by state-run companies ' refusal to cut pump prices, even as international fuel prices have fallen sharply. Crude prices are down 20% year-on-year, petrol by 14% and diesel by 17%, yet domestic pump prices remain frozen. This has resulted in windfall margins for both state-run and private-sector fuel retailers. Reliance Industries and Nayara Energy are using these margins to undercut state-run firms by up to ₹3 per litre, steadily eroding their market share in the retail petrol and diesel business, according to industry executives. In April-May, the private sector's share of diesel sales increased to 11.5% from 9.6% a year earlier. In petrol, the share increased to 10% from 9%. At the same time, in the bulk diesel business, state-run and private suppliers were locked in a fierce battle, offering fuel at steep discounts to retail prices-highlighting just how much room there is to cut prices in a truly competitive market, according to executives. State-run Indian Oil Corporation regained significant share from private players in the bulk diesel segment during April-May. State-run firms are reluctant to reduce pump prices, multiple executives said, as they want to use the expanded margins from petrol and diesel to offset losses incurred on LPG sales to households. The government regulates LPG prices and is expected to compensate state-run firms for losses when the fuel is sold below market rates. However, in 2024-25, Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum suffered a combined loss of ₹41,266 crore on LPG sales and received no compensation. Private fuel retailers, by contrast, do not bear such LPG-related losses.
Time of India
12-06-2025
- Business
- Time of India
Private fuel retailers gain market share as PSUs refuse to lower prices
Private fuel retailers Reliance Industries and Rosneft-backed Nayara Energy are profiting from a market distortion created by state-run companies' refusal to cut pump prices, even as international fuel prices have fallen sharply. Crude prices are down 20 per cent year-on-year, petrol by 14 per cent and diesel by 17 per cent , yet domestic pump prices remain frozen. This has resulted in windfall margins for both state-run and private-sector fuel retailers. Reliance Industries and Nayara Energy are using these margins to undercut state-run firms by up to ₹3 per litre, steadily eroding their market share in the retail petrol and diesel business, according to industry executives. In April-May, the private sector's share of diesel sales increased to 11.5 per cent from 9.6 per cent a year earlier. In petrol, the share increased to 10 per cent from 9 per cent . At the same time, in the bulk diesel business, state-run and private suppliers were locked in a fierce battle, offering fuel at steep discounts to retail prices-highlighting just how much room there is to cut prices in a truly competitive market, according to executives. State-run Indian Oil Corporation regained significant share from private players in the bulk diesel segment during April-May. State-run firms are reluctant to reduce pump prices, multiple executives said, as they want to use the expanded margins from petrol and diesel to offset losses incurred on LPG sales to households. The government regulates LPG prices and is expected to compensate state-run firms for losses when the fuel is sold below market rates. However, in 2024-25, Indian Oil Corporation, Hindustan Petroleum , and Bharat Petroleum suffered a combined loss of ₹41,266 crore on LPG sales and received no compensation. Private fuel retailers, by contrast, do not bear such LPG-related losses.
