New Delhi is planning to increase fuel production by over 20% in the next five years
India is poised to significantly increase its crude refining capacity in an effort to accommodate its growing demand for fuel, Bloomberg reported on Wednesday.
The world’s third-largest crude oil importer, India, seeks to raise production of transport fuels such as gasoline and diesel by increasing processing capacity by more than 20% over the next five years in what could be the last refining boom in the world, the outlet said.
According to India’s junior oil minister, Rameswar Teli, crude processing capacity is projected to grow by 56 million tons a year, or around 1.12 million barrels per day (bpd) each year until 2028. The cost of the additional capacity will amount to around $60 billion, Rystad Energy estimated.
“It’s a rare boost for a global refining industry that’s in a state of decline in the US and Europe, while China’s massive sector is adjusting to Beijing’s green goals after years of development made it a processing powerhouse,” Bloomberg wrote.
India has been planning to increase its refining capacity for years, and may overtake China as the top driver of incremental demand for oil, experts say.
“Expansions continue to be based in the areas where demand is growing. India is the one where we see the continuation of a trend of growth of over 200,000 barrels a day between now and the next four or five years,” said Giovanni Serio, the head of research at Vitol Group.
However, India is not only meeting its own demand for fuel. Since Western sanctions on Russian crude went into effect in 2022, Indian processing plants have been snapping up cheap Russian oil, refining it and reselling it to the EU at a competitive price. New Delhi is now on track to become the bloc’s largest supplier of refined products.
For more stories on economy & finance visit RT’s business section
