India's Oil & Gas Industry

Layer 1 · Upstream

Exploration & production

Upstream companies search for and produce crude oil and natural gas. The public-sector ONGC and Oil India operate alongside private and joint-venture companies. Blocks are awarded under the Hydrocarbon Exploration and Licensing Policy (HELP, 2016) through Open Acreage Licensing Policy (OALP) rounds run by the Directorate General of Hydrocarbons.

OALP-X, with 25 blocks and 1,91,986 sq km, is the largest round offered so far. Its bid deadline was extended into 2026; no awards had been confirmed when this page was checked. See the DGH OALP portal.

Layer 2 · Midstream

Transportation, storage & pipelines

Midstream infrastructure carries crude from ports and fields to refineries, products to markets, and gas to users. Gas pipelines that other companies can use on a regulated basis (common carriers) come under the PNGRB. Tariffs have been unified into two zones from 1 January 2026.

Source: PPAC Snapshot, Aug 2026; PNGRB tariff press note, 16 Dec 2025.

Layer 3 · Downstream

Refining, distribution & retail

Refineries turn crude into fuels and feedstocks. Oil marketing companies distribute them through retail outlets, LPG distributors and bulk supply. Public-sector companies own most retail outlets, alongside private retailers.

Refining & fuels in detail

Layer 4 · Petrochemicals

Industrial applications

Petrochemicals such as polymers, fibre intermediates and chemicals are made from refinery streams (naphtha, propylene) and from gas (ethane, propane). In India, petrochemical units are often built into refinery complexes or gas-processing plants run by the same companies. The Department of Chemicals and Petrochemicals, a separate department under another ministry, handles petrochemical policy.

Layer 5 · Natural gas

Production, imports, LNG & distribution

About half of India's gas comes from domestic fields and half arrives as LNG. Gas goes to fertiliser plants, power stations, city gas networks (CNG for vehicles and piped gas for homes), refineries and industry.

Natural gas & LNG in detail

Layer 6 · Consumers

Transport, households, agriculture & industry

Diesel is the largest single product, used for freight, buses, agriculture and back-up power. Petrol powers mainly two-wheelers and cars. LPG is the main clean cooking fuel. ATF fuels aviation. Industry uses fuel oil, petroleum coke, naphtha, bitumen and gas.