§1How big it is
19 public-sector, 3 private-sector and 1 joint-venture refinery; refining capacity rose from 215.066 MMTPA (Apr 2014) to 256.816 MMTPA (Apr 2024)
PIB backgrounder (MoPNG): India's Petroleum Industry - Fueling Growth and Innovation (27 Jan 2025)651.8 million tonnes recoverable crude oil reserves and 1,138.6 billion cubic metres recoverable gas reserves
PIB backgrounder (MoPNG): India's Petroleum Industry - Fueling Growth and Innovation (27 Jan 2025)India is the seventh-largest exporter of refined petroleum products
PIB backgrounder (MoPNG): India's Petroleum Industry - Fueling Growth and Innovation (27 Jan 2025)E&P approvals cut from 37 to 18, nine of them on self-certification
PIB backgrounder (MoPNG): India's Petroleum Industry - Fueling Growth and Innovation (27 Jan 2025)
§2Ways to get started
- Fuel retail outlet or LPG distributorship (OMC advertisement and selection)
- Tanker transport contracts with OMCs
- Plastic moulding / film unit using polymer feedstock
- Lubricant blending and distribution
- Compressed biogas plant under SATAT
§3Hubs and clusters
§4Licences and registration
- PESO licence for storage of petroleum products (Petroleum Rules 2002)
- Dealership / distributorship agreement with an oil marketing company (retail outlet, LPG)
- PNGRB authorisation for city gas distribution / pipelines
- Fire NOC from state fire service
- Udyam Registration (MSME) - free, online, PAN + Aadhaar based
- GST registration (mandatory above turnover threshold or for inter-state supply)
- Shops & Establishments registration or Factory Licence (Factories Act) depending on set-up
- State Pollution Control Board Consent to Establish / Operate per CPCB 2025 Red/Orange/Green/White/Blue category (White exempt)
- IEC - Importer Exporter Code from DGFT (only if importing or exporting)
§5Regulators
- Ministry of Petroleum and Natural Gas
- DGH - Directorate General of Hydrocarbons (upstream)
- PNGRB - Petroleum and Natural Gas Regulatory Board (downstream, city gas)
- PESO - Petroleum and Explosives Safety Organisation
§6Government help
- PMUY - Pradhan Mantri Ujjwala Yojana (LPG connections; targeted subsidy Rs 300 per cylinder)
- SATAT (compressed biogas offtake by OMCs)
- Ethanol Blended Petrol programme (OMC offtake)
- Cross-sector schemes: Udyam-linked MSME benefits, PMEGP, CGTMSE credit guarantee, Stand-Up India, Startup India (DPIIT recognition), RoDTEP / duty drawback and Export Promotion Mission for exporters
§7For exports
- CHEMEXCIL / PLEXCONCIL (petrochemical-derived products)
- DGFT
§8Pros and cons
Merits
- Refining capacity and exports keep growing [PIB MoPNG 2025]
- Dealer and distributor routes are transparent, advertised selections
- Approvals for E&P simplified [PIB MoPNG 2025]
Demerits
- Core activities are capital-heavy and PSU-dominated
- Fuel prices and dealer margins are set by OMCs
- Safety licensing (PESO, fire) is strict and ongoing
- Long-term demand risk from EVs and energy transition