Indian Oil Gujarat refinery to operate at 18 million tons

Indian Oil's Gujarat refinery will operate at an expanded 18 million metric tons capacity by the end of fiscal 2027, officials said, which could ease regional refined-fuels and petrochemicals supply.

Market reaction pending. Officials said the increase forms part of the Petrochemicals and Lube Integration Project, a programme to combine refining and petrochemical production at the site.

18 million metric tons expansion

Officials said the refinery currently sources about 30% of its crude from domestic fields and 70% from imports, drawing supplies from the Middle East, the US and Venezuela. The company framed the work as an integration of refining and petrochemical output rather than a standalone crude-processing lift.

Analysts said the extra capacity could raise availability of refined products and petrochemical feedstocks in South Asia and shift crude demand toward grades suited to integrated units. They added such changes typically influence tanker trade patterns and refine margins, though officials did not provide a run-rate projection.

Officials expect the expanded units to begin operations by March 31, 2027. Markets will monitor refinery throughput and product export volumes through and after that date to assess near-term effects on regional product balances.