NEW DELHI: Indian Oil Corporation (IOC), India’s largest oil company, plans to invest ₹1.66 lakh crore over the next five years to expand its core operations in refining and fuel marketing, while also venturing into petrochemicals, natural gas, and renewable energy, Chairman Arvinder Singh Sahney announced on Saturday.
The company aims to increase its crude oil refining capacity from 80.75 million tonnes per annum (MTPA) to 98.4 MTPA by 2028, with major expansions at Panipat, Gujarat, and Barauni. To support efficient energy distribution, IOC is extending its pipeline network—the country’s largest—to 22,000 km, with 21 ongoing projects, including pipelines and storage facilities in Nepal.
Petrochemicals are poised to become IOC’s next growth driver, with capacity set to rise from 4.3 MTPA to over 13 MTPA by 2030. The focus will be on specialty chemicals to reduce imports and boost margins. Meanwhile, the company’s fuel retail network of 40,000+ outlets will continue expanding, adding EV chargers, battery-swapping stations, and CNG and LNG dispensing points.
On the energy transition front, IOC is investing ₹2.5 lakh crore to achieve net-zero operational emissions by 2046. Projects include green hydrogen, Sustainable Aviation Fuel (SAF), and expanding its renewable power portfolio from 1 GW to 18 GW within three years.
“Over the next five years, we are committed to ₹1.66 lakh crore in investments, emphasizing petrochemicals, natural gas, and renewable energy to balance India’s growing fuel demand with the global energy transition,” Sahney said.
IOC is also enhancing per-pump throughput, non-fuel retail (NFR), and high-potential segments such as bitumen and bunkering. Future-ready initiatives include LNG bunkering, coastal infrastructure, integrated shipping, and data transmission services.
In LPG, IOC has launched the BIS-certified Chhotu Master, a 5 kg cylinder and cooktop combo, starting with the first ‘Chhotu Shopee’ in Ahmedabad. Industrial clients benefit from offerings like XtraBoost AutoLPG and Propane Plus for cleaner, more efficient fuels. Servo lubricants now serve 45 countries, while IOC maintains a 54.5% share in aviation fuel, with new stations at Srinagar and Rewa.
The natural gas business grew 20% to 7.9 MTPA, backed by global sourcing agreements, while city gas distribution now covers 49 areas in 21 states, serving 21% of India’s population. In other sectors, a new explosives plant was commissioned at Neyveli, with projects underway in Telangana and Maharashtra. Cryogenics operations have secured government and export contracts, and a new unit at Dindori will boost domestic production.
“All initiatives are underpinned by strict capital discipline, ensuring every investment adds long-term value and keeps IOC future-ready,” Sahney said.
Reflecting on the past year, he noted the impact of geopolitics on energy markets: the ongoing Russia-Ukraine conflict, emerging tensions in the Middle East, disruptions in the Red Sea, and tariff hikes by the United States all added uncertainty. Despite these challenges, IOC achieved resilient performance in 2024-25: sales crossed 100 million tonnes, the 20,000 km pipeline network maintained seamless energy flow, over 40,000 fuel stations served 32 million customers daily, and Indane LPG reached 150 million kitchens.
IOC also retained a strong presence in petrochemicals, natural gas, and exploration, further reinforcing its diversified energy portfolio.
