Saudi Aramco Eyes Strategic Role in India’s Refinery Expansion

Key Takeaways

1. Stable Pricing: Petroleum product prices remain largely stable across markets.
2. Capacity Surge: India plans to add over 50 MMT/year refining capacity by 2028.
3. Strategic Shift: Saudi Aramco eyes new refinery collaborations after earlier deal exits.
4. Global Confidence: India continues to attract strategic foreign energy investments.

Petroleum Product Prices – April 2025

• Refinery Bitumen (VG30) is available in Panipat at ₹48,612 per metric ton. Roadgrip Bitumen Emulsion (RS 1) is priced at ₹33,810 per metric ton in Mathura. In Delhi, Base Oil (SN150) is being offered at ₹68 per kilogram. 
• Fuel Oil (Virgin 180cST Furnace Oil) is available in Mundra at ₹48.5 per kilogram. Lubriedge Rubber Process Oil (Paraffinic 245) is priced at ₹72 per litre in Delhi. 
• In Bhiwadi, LubriEdge Hydraulic Oil (Hydraulic Oil 68) is available at ₹87 per litre, LubriEdge Gear Oil (Gear Oil 150) at ₹115 per litre.
• LubriEdge Rust Preventive Oil (Water Displacing Type - WDM) at ₹122 per litre, and LubriEdge Metal Working Fluid (Soluble Cutting Oil) is priced at ₹112 per litre.

Refining Capacity: Key Players Expanding Capacity

• India’s rapidly growing energy and petrochemical needs are driving a major push in refinery expansion, creating fresh demand for crude oil and petrochemical feedstocks. 
• The country’s current refining capacity of 258.1 million metric tons per year is targeted to increase to 309.5 million metric tons by 2028, with S&P Global Commodity Insights projecting an additional 400,000 barrels/day (b/d) of refining capacity requirement by the early 2030s. This surge is being driven by the country’s rising industrialization, urbanization, and consumer demand for fuel and downstream products.
• On the supply side, Indian state-owned refiners like IOCL, BPCL, HPCL, and ONGC are leading capacity additions and integration of petrochemical units across several sites—Panipat, Gujarat, Paradip, Barauni, Bina, and Rajasthan. 
• While India looks inward for refining and petrochemical strength, global oil producers like Saudi Aramco see this as a strategic opportunity to secure long-term crude supply contracts and downstream market share in the fast-growing Indian economy.

Market News: Saudi Aramco’s India Strategy

• Saudi Aramco has signaled renewed interest in investing in India’s refinery sector after earlier delays and project setbacks. The Middle East’s largest oil exporter is closely monitoring opportunities with BPCL and ONGC, who are currently driving new refinery projects. 
• If partnerships are established, it would not only secure a reliable outlet for Saudi crude but also provide Aramco access to India’s retail fuel and petrochemical markets, aligning with its long-term diversification strategy.
• Despite the cancellation of Aramco’s proposed US$15 billion deal with Reliance Industries and the stalled Ratnagiri mega refinery project, India remains a top priority. 
• As per S&P Global, a partnership with BPCL or ONGC would allow Aramco to increase its stake in refinery output and downstream retailing. In 2024, Saudi Arabia was India’s third-largest crude oil supplier, exporting 625,000 b/d, and a successful investment could help reclaim and expand this share.
• Simultaneously, Indian refiners are independently ramping up capacities: HPCL Mittal has raised petrochemical intensity to 20%, and the HPCL Rajasthan Refinery project aims for 26%—one of the highest in India.

Expert Opinion: Global-Local Synergy on the Rise

• With Aramco showing strategic interest in India's refining future, industry observers expect a new wave of foreign collaboration, secure crude tie-ups, and enhanced downstream integration. 
• The move would strengthen Saudi Aramco's footprint in Asia’s fastest-growing fuel market while supporting India’s ambition to become a regional refining and petrochemical hub. 
• Finalized deals could also help stabilize long-term crude supply flows and stimulate regional investment momentum.