IEW 2026: IOC to export about 5 MMT of diesel by 2027 post refinery expansion, says Director (Marketing)

Quitol (Goa): Diesel is one of the major petroleum products that may require exports as refining capacity expands, with Indian Oil Corporation expecting to ship around 5 million metric tonnes (MMT) by 2027, Director (Marketing) Saumitra Srivastava said during a media interaction on the sidelines of India Energy Week (IEW) 2026.

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Srivastava said that while domestic sales remain more profitable than exports, some volume will need to be placed overseas as production rises. “Export margins are always slightly lower than domestic sales, but diesel is one product where some exports will be necessary,” he said.

Domestic sales remain priority for IOC

Srivastava said Indian Oil is keen to sell as much of its output as possible within the country, as domestic sales offer higher margins compared to exports. He pointed to strong growth in retail and direct sales, including a 9–10 percent jump in market share in direct sales of diesel.

“With the kind of refinery expansion we are undertaking, we will have more product to sell. My preference is to sell it in the country because we make more profit than exporting,” he said, adding that sustaining customer interest in the domestic market is critical. He added that competition in the domestic fuel market remains intense, with some private refiners focusing on discounted domestic sales amid limited export opportunities.

Refining capacity to rise to 98 MMT

Indian Oil is in the process of raising its annual refining capacity to about 98 million tonnes within the next one-and-a-half years, up from around 80 million tonnes at present. The higher capacity will increase availability of key fuels such as diesel and petrol, even as market dynamics determine the export requirement.

Retail network expansion underway

The company currently operates close to 41,000 retail fuel stations across India and plans to expand this network to more than 44,000 outlets over the next two years, Srivastava said. He noted that Indian Oil is on track to overtake global majors in terms of retail footprint, narrowing the gap with companies such as Shell, which operates about 44,000 fuel stations worldwide.

ATF demand seen growing

Srivastava also said Indian Oil expects India’s jet fuel demand to grow at about 10 percent annually until 2030, supported by rising air travel and expanding aviation infrastructure.

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