New Delhi, 11/02/2025: Hindustan Petroleum Corporation Limited (HPCL), a government-owned oil company, is expanding its refineries and petrochemical business to meet India’s growing fuel demand and strengthen its market position. Chairman Rajneesh Narang said HPCL is increasing refinery capacity, investing in petrochemicals, and improving crude oil purchasing to reduce costs. Since India is the world’s third-largest oil importer and consumer, fuel demand is expected to rise for at least the next decade, and HPCL is preparing to meet this need.
At its Vizag refinery in southern India, HPCL recently increased capacity to 300,000 barrels per day (bpd) and is considering an additional 40,000–60,000 bpd expansion, pending approval. The refinery will soon start using new units to improve fuel production and boost profits. HPCL is also adopting advanced technology to make refining more efficient and eco-friendlier.
Besides refining, HPCL is focusing on petrochemicals, which offer higher profits and long-term growth. Its new Barmer refinery in Rajasthan will be India’s first to turn 26% of crude oil into chemicals instead of fuel. The refinery is expected to start processing crude by mid-year, with the petrochemical plant set to begin operations in December. This move into petrochemicals will help HPCL stay competitive as the energy industry changes.
To support its expansion, HPCL is also improving how it buys crude oil. The company imports about 21 million tons of crude annually, with 8–9 million tons coming from short-term deals. Last year, it set up a crude trading team to negotiate better prices and lower costs. While India is shifting toward electric vehicles and renewable energy, HPCL is balancing refinery growth with petrochemical investments to secure its future in the energy sector.
