India's Core Industries
India's Oil Refineries
How India became a major oil refining hub despite importing most of its crude, the role of Jamnagar, and how refining links to exports and energy security.
India imports most of the crude oil it uses, yet it is one of the world’s largest refiners, with capacity among the top four globally.
Major refineries
- Reliance Industries’ Jamnagar complex in Gujarat is the world’s largest refining complex at a single site.
- Indian Oil, Bharat Petroleum and Hindustan Petroleum run many public sector refineries.
- Nayara Energy, partly owned by Russia’s Rosneft, runs a large refinery at Vadinar.
Refining economics
Refiners buy crude and turn it into petrol, diesel, jet fuel, LPG and petrochemicals. Profitability depends on refining margins: the difference between product prices and crude costs.
Complex refineries like Jamnagar can process cheaper, heavier crudes and produce more valuable products, earning higher margins.
Exports
India is a major exporter of refined products, such as diesel and jet fuel, to Europe, Africa and Asia. Petroleum products are among India’s largest exports by value.
Russian crude
After 2022, Indian refiners bought large volumes of discounted Russian crude, lowering costs. This became controversial, and in 2025 the US penalised India with extra tariffs partly over these purchases.
Energy security
Refining capacity lets India process crude from many sources and store fuel. India also maintains strategic petroleum reserves in underground caverns.
Jamnagar refines crude oil from the Middle East and Russia. Some of the diesel it produces is shipped to Europe, earning foreign exchange for India even though the crude was imported.
India imports crude but exports large volumes of refined products.
- India is among the world's top four refiners despite importing most crude.
- Jamnagar is the world's largest refining complex.
- Refining margins depend on product prices versus crude costs.
- Refined products are a major export; discounted Russian crude became controversial.
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