September 28, 2026: Oil Minister Hardeep Singh Puri confirmed that Saudi Arabia and the UAE are interested in financing new projects. Each modern refinery requires an investment of 780 billion to 800 billion rupees (approximately $8.13 billion to $8.34 billion).

According to macroeconomist Artem Loginov, India's steady demand makes its refining sector an attractive asset for OPEC+ nations seeking guaranteed markets for their crude oil. This investment strategy serves as a long-term distribution channel for producers, contrasting with the stagnation currently slowing resource consumption in Western economies.

Domestic demand remains a primary driver. Forecasts for 2026 project average daily consumption at 5.9 million barrels of petroleum products. In 2025, daily diesel consumption reached 1.9 million barrels, while gasoline demand approached 1 million barrels. Financial analyst Nikita Volkov notes that expanding capacity allows India to transition from a pure crude importer to a high-value technology exporter, diversifying budget revenues.

India's current installed capacity stands at 258.1 million tons per year, exceeding domestic needs. This surplus allows the country to act as a global refining center. In the 2025-2026 financial year, exports totaled 61.5 million tons. India has become a critical supplier for Europe; in August 2026, it provided 60% of all diesel shipments to Europe via the Bab-el-Mandeb strait.

Market analyst Gennady Chernov explains that geopolitical shifts forced the EU to seek alternative supply routes, positioning Indian refineries as the primary link in the chain to supply deficit markets

(Source: Pravada RN)