When US Secretary of State Marco Rubio visited India this week, one of the key stops on his itinerary was Reliance Industries’ Jamnagar refinery in Gujarat, the world’s largest single-site refining complex. A day earlier, Rubio had called India a “refining superpower” and said the US wanted to explore opportunities to process more Venezuelan crude at Indian refineries.
Rubio also discussed energy cooperation with External Affairs Minister S Jaishankar, including increasing Indian purchases of American energy. His visit underlined the growing importance of India’s refining industry at a time when wars, sanctions and disruptions to shipping routes are reshaping global oil trade.
How India compares with other major refining nations?
According to the Energy Institute Statistical Review of World Energy, China leads the world in refining capacity, at around 18.5 million barrels per day (mb/d), followed closely by the US at 18.4 mb/d. China’s refining industry includes state-owned giants such as Sinopec and PetroChina, as well as large private integrated complexes operated by Zhejiang Petrochemical and Hengli Petrochemical. Russia, with a refining capacity of around 6.8 mb/d, has an extensive refining network that produces transport fuels and other petroleum products.
India ranks fourth globally in refining capacity, with 267.11 million metric tonnes per annum (MMTPA), according to the Petroleum Planning and Analysis Cell (PPAC), which roughly translates to 5.6-5.97 mb/d. South Korea, with a refining capacity of around 3.4 mb/d, also has a strong refining industry, coming in fifth position.
Why are oil refineries shutting in Europe but expanding in India?
Europe is facing mounting pressure from high operating costs, weakening demand for traditional transport fuels and competition from newer refineries in Asia and the Middle East.
According to an S&P Global report, Europe may need to shut down 500,000-700,000 barrels per day of refining capacity by 2030. The report identifies high natural gas and electricity prices, expensive labour and stringent carbon-emission rules as key challenges for European refiners. These costs make it difficult for older and less efficient plants to remain profitable, particularly when refining margins are weak.
Demand is another challenge. The growing use of electric vehicles, improvements in fuel efficiency and the shift towards cleaner energy are gradually reducing demand for petrol and diesel in Europe. At the same time, new refineries in Asia and the Middle East are increasing supplies, putting pressure on European refiners, particularly those that depend heavily on exports.
The US is also seeing refinery closures. Data from the US Energy Information Administration (EIA) show that US refining capacity declined in 2025. Its capacity was around 18.2 million barrels per calendar day on January 1, 2026, down by more than 250,000 barrels per day from a year earlier. Two major refineries closed in 2025, while smaller capacity increases at existing plants partly offset the losses. However, the US is not abandoning refining altogether. US President Donald Trump has announced plans for a new refinery project at Brownsville, Texas, involving America First Refining and an investment commitment from Reliance Industries. India, meanwhile, continues to expand its refining industry.
Why has India emerged as a refining superpower?
Refining is the process of converting crude oil extracted from underground reservoirs into usable products such as petrol, diesel, aviation turbine fuel (ATF), liquefied petroleum gas (LPG), naphtha and other fuels and industrial feedstock. India ranks fourth globally and second in Asia in refining capacity. It has built one of the world’s largest refining industries, capable of processing crude oil imported from different countries. The country produced 284.9 million tonnes of petroleum products in FY 2025-26, including 281.5 million tonnes from crude oil and other inputs processed in refineries. It exported 61.5 million tonnes of petroleum products during the year, according to the petroleum ministry.
Different grades of crude oil?
Not all crude oil is the same. Some varieties are light and relatively easy to process, while others are heavy and contain more sulphur. Heavy, high-sulphur crude generally requires more complex processing to produce valuable fuels that meet the required quality standards. Refineries with advanced processing units can handle these more difficult grades and extract valuable products from them. This gives Indian refiners the flexibility to buy crude from different suppliers, depending on its price, quality and availability.
How is India expanding its refining capacity?
Indian Oil Corporation Limited (IOCL) is the country's largest public sector refiner, with a combined capacity of 70.35 MMTPA across its refineries. Bharat Petroleum Corporation Limited (BPCL) has a capacity of 35.30 MMTPA across its refineries in Kochi, Mumbai and Bina, while Hindustan Petroleum Corporation Limited (HPCL) has a capacity of 24.50 MMTPA.
Mangalore Refinery and Petrochemicals Limited (MRPL) and Chennai Petroleum Corporation Limited (CPCL) contribute 15 MMTPA and 10.50 MMTPA, respectively. Numaligarh Refinery Limited (NRL) has a capacity of 3 MMTPA, while Oil and Natural Gas Corporation (ONGC) operates a small refinery at Tatipaka, with a capacity of 0.06 MMTPA.
India's refining industry is expected to grow further as the government seeks to meet rising demand and strengthen the country's position as a global refining hub. The government plans to increase refining capacity to 309.5 million tonnes per annum by 2030.
HPCL is pursuing an expansion plan to increase its refining capacity to 46 MMTPA by 2028. One of its key projects is the HPCL Rajasthan Refinery at Pachpadra. The joint venture between HPCL and the Rajasthan government has a planned capacity of 9 million tonnes per annum, with HPCL holding a 74% stake and the state government holding the remaining 26%.
The Numaligarh Refinery in Assam is also expanding its capacity from 3 million tonnes to 9 million tonnes per annum. The additional capacity could help India meet future domestic demand and increase its ability to export petroleum products.
What makes the Jamnagar refinery so important?
Reliance Industries' Jamnagar complex illustrates the scale and technological capabilities of India's refining industry. Its two refineries have a combined capacity of around 1.4 million barrels per day, making it the world's largest single-site refining complex.
The complex has advanced processing facilities that allow it to handle a wide range of crude grades, including heavy and high-sulphur oil. Its ability to process heavy crude is particularly relevant as Venezuela seeks to increase oil production and Washington explores opportunities to direct more of its crude towards Indian refineries. According to the company, the refinery has processed more than 216 different grades of crude oil.
Why does the US want India to process more Venezuelan crude?
Venezuela holds some of the world's largest proven crude oil reserves, much of which is heavy crude that requires specialised refining facilities. Only a limited number of refineries can process such oil efficiently and economically. Reliance has experience in handling Venezuelan crude, making Jamnagar a potential destination for larger volumes if supplies increase and commercial and regulatory conditions permit. For the US, Indian refiners offer a potential market for Venezuelan oil. There is also a geopolitical dimension. The US has been pressing India to reduce its dependence on Russian crude while seeking closer energy ties with New Delhi. Promoting supplies from the Western Hemisphere could help Washington redirect global oil trade.
India has imported Venezuelan crude in the past, but purchases declined sharply as sanctions and other restrictions affected trade. Reliance has been a major buyer because its Jamnagar complex is equipped to process heavy grades such as Merey-16.
India's crude imports from Venezuela rose sharply in the first five months of FY 2026-27. According to the Global Trade Research Initiative (GTRI), they reached about $3.6 billion between April and August 2026. Imports through Reliance’s SEZ Jamnagar stood at $1,695.3 million, or 47.3% of the total, while Sikka accounted for $968.2 million, or 27%. Other imports comprised $421.3 million through Indian Oil’s Paradip facility, representing 11.7%; $405.8 million through Mundra’s storage terminals operated by HPCL and others, accounting for 11.3%; and $95 million through Nayara Energy’s Vadinar facility, representing 2.7%. Together, these purchases accounted for India's total Venezuelan crude imports of $3,585.6 million.
However, Venezuelan oil is not automatically cheaper once it reaches India. Its heavy, high-sulphur composition increases processing requirements, while the long journey from South America adds to shipping costs. The discount offered by suppliers must be sufficient to cover these expenses and still make the purchase worthwhile. Venezuelan crude could therefore provide another sourcing option for Indian refiners, but it is unlikely to replace the need to maintain a diverse portfolio of suppliers.