Indian Oil Expands Refining Capacity Amid Rising Energy Demand

Indian Oil Corporation (IOC) is expanding its refining capacity to meet rising energy demand in India. The company plans to increase its total capacity from the current 80.5 million tonnes per annum (MTPA) to 98 MTPA by 2028, with a focus on balancing traditional oil with green energy transition.

To achieve this goal, IOC is integrating bio-feedstocks directly into its existing refinery processes to lower carbon intensity and leverage its large-scale assets. The company is also developing Sustainable Aviation Fuel (SAF) at its Panipat refinery and has established supply agreements with airlines like Air India and Akasa Air.

The expansion of refining capacity supports long-term growth, but investors may watch how the company balances this heavy capital spending with its debt position. A $1 per barrel increase in global crude prices can add approximately ₹16,000 crore annually to India's import cost, highlighting the risks of global price volatility.