India’s Domestic production of Petroleum fuels and oils

Let us see India’s domestic production of petroleum fuels and oils below in detailed

Domestic production of petroleum fuels and oils refers to entire process of exploration, extraction, processing and distribution. It includes upstream, midstream and downstream stages.

• Extracting Crude Oil
• Refining Crude Oil
• Preparing petroleum products from Crude Oil

Petroleum fuels are used to generate energy for transportation and domestic needs; moreover, they power vehicles and household appliances, and consequently, they support daily life across multiple sectors.

Examples of Petroleum Fuels – Gasoline(petrol), Diesel, Kerosene, Jet fuels, LPG.

Petroleum oils are widely used not only as lubricants but also in various industrial applications. Furthermore, these oils plays a crucial role in ensuring the smooth operation of machinery. In addition, their versatility makes them indispensable across multiple sectors.

Examples of Petroleum Oils – Lubricants, Grease for reducing friction and tear, Engine oil, Bunker fuel.

Major Oil producing regions in India :

1.Rajasthan

Rajasthan is the largest onshore oil producing region in India. However, it holds about 23.29% share of India’s crude oil production primarily due to its abundant extraction sites. Subsequently, the crude oil is sent to refineries for further processing, where it is separated and then either used domestically or exported.

Rajasthan produces approximately 5-7 million metric tonnes of crude oil annually; moreover, this substantial output positions the state as a key player in India’s oil sector. In addition, ongoing exploration and development activities continues to boost its production capacity. Rajasthan produced approximately 5.07 MMT of crude oil in 2024-25; moreover, these figures demonstrates ongoing growth in production capacity compared to previous years.

Major Extraction fields – Mangala, Bhagyam, Aishwarya, Saraswati and Rajeshwari are in Barmer-sanchor basin.

– Jaisalmer Basin

– Bikaner-nagaur Basin

– Vindhyan Basin

Refined at– HPCL Rajasthan Refinery Ltd. (HRRL), [Koyali refinery in Gujarat, Panipat Refinery in Haryana, Mathura refinery in Uttar pradesh, which are operated by India oil].

2.Gujarat

Gujarat is the second largest oil-producing region in India; notably, it is located around the Gulf of Khambhat and along the western coast. Furthermore, Gujarat has both on shore and offshore sites for the extraction of crude oil, subsequently, this highlights its strategic importance in the oil industry.

Gujarat produced approximately 4.85 MMT of crude oil in 2024-2025; moreover, this figure reflects ongoing growth in production capacity compared to previous years.

Onshore Extraction fields – Ankleshwar, Kalol, Nawgam, Mehsana, Sanand, Lunej, Kosamba, Kathana, cambay

Offshore Extraction fields – Aliabet, Lakshmi and Gauri, Bhaskar III

Refined at – Jamnagar refinery (owner- Reliance Industries Ltd.(RIL)) [world’s largest oil refinery]

Vadinar Refinery (Owner– Nayara Energy Limited fomerly Essar Oil)

Koyali Refinery (Owner- Indian Oil Corporation Ltd.(IOCL))

3.Assam

Assam is home to oldest oil fields, moreover, these sites are relatively remote and located in Brahmaputra valley.

Assam produced approximately 4.16 MMT of crude oil were produced in 2024-2025, moreover, this figure demonstrates ongoing growth in production capacity compared to previous years.

Major Extraction Fields– Digboi, Naharkatiya, Moran-hugrijan, Lakwa & Lakshmi, Rudrasagar, Sibsagar, Geleki, Badarpur, Barholla, Anguri and khoraghat

Refined At– Digboi refinery, Guwahati refinery, Barauni refinery

4.Tamil Nadu & Andhra Pradesh

Onshore fields lie in the Cauvery basin, while Offshore fields are located in Krishna Godavari basin, furthermore, Andhra Pradesh has few Onshore fields, underscoring the state’s mixed exploration landscape.

In Tamil Nadu – Approximately 0.32 MMT in 2024-25

In Andhra Pradesh – Approximately 0.24 MMT in 2024-25

Major Extraction Fields– [Narimanam, Kovilappal (both onshore fields Cauvery basin)], Ravva offshore field in Krishna godavari Basin

Refined at– Nagapattinam refinery(cauvery basin), Manali refineries(chennai), Mangaluru refinery(krishna godavari basin)

5.Mumbai

Mumbai is the largest Offshore oil production field in India, it produces around 35% of the country’s domestic crude oil; however, both Onshore and Offshore oil fields exist in Mumbai, which further emphasizes its critical role in the nations energy sector.

Offshore production approximately 13.93 MMT in 2024-25

Major Extraction Fields– Mumbai High field, Bassein oil field

Refined At– HPCL Mumbai refinery, Bharat petroleum Mumbai Refinery(BPCL-MR)

6.Uttar Pradesh & Bihar

Uttar Pradesh and Bihar are currently in the exploration and early production phases of crude oil, however, estimates are not available for these states as extraction remains minimal. Moreover, ongoing surveys and preliminary activities indicate potential growth, although significant production has yet to commence.

Major Extraction Fields– Exploration Goin on in Ballia (UP), Going on in Samastipur/Bhojpur (Bihar)

Refined At– No dedicated local refineries exist yet. so companies will send the crude oil to the nearest refineries for processing.

Conclusion

India’s domestic production of petroleum fuels and oils play a crucial role in meeting the country’s vast energy needs, but it cannot fully satisfy the growing demand. Despite significant exploration and production efforts by national companies like ONGC and Oil India Limited, domestic crude oil production has seen a gradual decline in recent years. This decrease highlights the ongoing challenges in upstream activities, such as geological complexities and investment constraints. As a result, India depends heavily on imports, sourcing nearly 89% of its crude oil from other countries. This import dependency ensures a steady supply but also exposes the economy to fluctuations in global oil prices and supply disruptions.

At the same time, India’s refining capacity and petroleum product manufacturing continue to expand steadily. The country processes a large volume of crude, both domestic and imported, to produce essential fuels like diesel, petrol, aviation turbine fuel, and liquified petroleum gas. This ability to refine and produce a wide range of petroleum products domestically supports industrial growth and transportation. However, the government and industry must keep strengthening upstream production capabilities and diversify energy sources to enhance energy security. Investments in new exploration technologies, strategic petroleum reserves, and alternative fuels will help India gradually reduce its reliance on imports while continuing to fuel its economic development.

India’s focus on boosting domestic production must also prioritize cleaner technologies and renewable alternatives to ensure a sustainable energy future. By embracing innovation and strengthening infrastructure, the country can reduce vulnerabilities and achieve greater energy resilience.