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IOC Boosts LPG Output As Refineries Run Over Capacity
ECONOMY & POLICY

IOC Boosts LPG Output As Refineries Run Over Capacity

Indian Oil Corporation boosted liquefied petroleum gas output by nearly 30 per cent amid the Iran war and operated refineries above 100 per cent utilisation.

The company set up 24?hour control rooms, held daily reviews and monitored markets to address gaps and maintain availability amid a shift away from Middle Eastern crude.

For the year ended March 2026 the company posted a standalone net profit of Rs 368,020 million (mn) on turnover of Rs 8.86 trillion (tn), with aggregate sales of more than 105 mn tonnes across fuels, gas and petrochemicals.

Refineries processed 75.45 mn tonnes and liquid pipeline throughput reached 102.52 mn tonnes while domestic petroleum?product sales rose to an all?time high of 88.97 mn tonnes.

Momentum continued into the first quarter as the group processed 19.17 mn tonnes of crude at 109.4 per cent capacity utilisation and achieved quarterly pipeline throughput of 28.55 mn tonnes; domestic market share increased to 43.1 per cent even as profitability was pressured by higher crude costs linked to West Asia conflict, and the chairman said the operating performance underlined the company’s resilience.

Expansions at Panipat, Gujarat and Barauni are expected to raise group refining capacity from 80.75 mn tonnes to about 98 mn tonnes as India expands toward 300 mn tonnes, and company expects to account for more than 40 per cent of incremental capacity.

The company is also shifting focus to petrochemicals, natural gas, renewables and cleaner fuels, targeting petrochemical intensity of about 15 per cent by 2030 and increasing natural?gas sales one point five times by the same year.

On the energy?transition front construction has begun on a green hydrogen plant at Panipat and the company has secured ISCC CORSIA certification for sustainable aviation fuel production through co?processing.

Its renewable arm Terra Clean is developing one gigawatt with another four point three gigawatts planned, with leadership saying West Asia crisis reinforced the need to build resilience and keep national energy security central.

Indian Oil Corporation boosted liquefied petroleum gas output by nearly 30 per cent amid the Iran war and operated refineries above 100 per cent utilisation. The company set up 24?hour control rooms, held daily reviews and monitored markets to address gaps and maintain availability amid a shift away from Middle Eastern crude. For the year ended March 2026 the company posted a standalone net profit of Rs 368,020 million (mn) on turnover of Rs 8.86 trillion (tn), with aggregate sales of more than 105 mn tonnes across fuels, gas and petrochemicals. Refineries processed 75.45 mn tonnes and liquid pipeline throughput reached 102.52 mn tonnes while domestic petroleum?product sales rose to an all?time high of 88.97 mn tonnes. Momentum continued into the first quarter as the group processed 19.17 mn tonnes of crude at 109.4 per cent capacity utilisation and achieved quarterly pipeline throughput of 28.55 mn tonnes; domestic market share increased to 43.1 per cent even as profitability was pressured by higher crude costs linked to West Asia conflict, and the chairman said the operating performance underlined the company’s resilience. Expansions at Panipat, Gujarat and Barauni are expected to raise group refining capacity from 80.75 mn tonnes to about 98 mn tonnes as India expands toward 300 mn tonnes, and company expects to account for more than 40 per cent of incremental capacity. The company is also shifting focus to petrochemicals, natural gas, renewables and cleaner fuels, targeting petrochemical intensity of about 15 per cent by 2030 and increasing natural?gas sales one point five times by the same year. On the energy?transition front construction has begun on a green hydrogen plant at Panipat and the company has secured ISCC CORSIA certification for sustainable aviation fuel production through co?processing. Its renewable arm Terra Clean is developing one gigawatt with another four point three gigawatts planned, with leadership saying West Asia crisis reinforced the need to build resilience and keep national energy security central.

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