State-owned Indian Oil Corporation (IOC) ramped up liquefied petroleum gas production by nearly 30 per cent and kept its refineries operating above 100 per cent utilisation as disruptions to maritime trade through the Strait of Hormuz threatened India’s energy supplies, its chairman said on Monday.
The company also diversified crude sourcing, realigned refinery operations and secured alternative supplies as the escalation of conflict in West Asia disrupted global energy markets, IOC chairman Arvinder Singh Sahney said in his address to the company’s 67th annual general meeting.
“For IndianOil, the priority during this unprecedented crisis has remained crystal clear – to maintain continuity of energy supplies despite constrained sourcing options and volatile international markets,” he said.
India imports more than 88 per cent of its crude oil requirement, while about 45 per cent of its crude imports and nearly 90 per cent of LPG imports are linked to the Strait of Hormuz, underscoring the exposure of the world’s third-largest oil consumer to disruptions in the strategic waterway.
“With close monitoring and guidance from the Ministry of Petroleum and Natural Gas, our teams have responded with agility – diversifying crude sourcing, realigning refinery operations and strengthening supply-chain coordination to secure alternate supplies, optimise cargo movements and rebalance products across regions,” he said.
IOC used 24-hour control rooms, daily reviews and real-time market monitoring to respond to supply gaps, he said, adding that the company had maintained product availability despite a “significant shift away from Middle Eastern crude grades.” “Despite a significant shift away from Middle Eastern crude grades, our refineries operated above 100 per cent utilisation, LPG production was ramped up by nearly 30 per cent within a short period, and our gas business maintained supplies to priority sectors while securing additional LNG from diversified geographies,” he said.
The disruption came as IOC was reporting record operating performance. For the year ended March 2026, the company posted a standalone net profit of Rs 36,802 crore on turnover of about Rs 8.86 lakh crore, with aggregate sales exceeding 105 million tonnes across petroleum products, natural gas and petrochemicals.
Its refineries processed a record 75.45 million tonnes of crude during the year, while liquid pipeline throughput reached a record 102.52 million tonnes and domestic petroleum-product sales rose to an all-time high of 88.97 million tonnes.
The momentum continued into the first quarter of the current financial year. IOC processed a record 19.17 million tonnes of crude at 109.4 per cent capacity utilisation, while pipeline throughput reached a quarterly record of 28.55 million tonnes. Its domestic petroleum-product market share rose to 43.1 per cent, the chairman said.
“While profitability during the quarter remained under pressure from higher crude costs arising from the West Asia conflict, the strength of our operating performance gives us confidence in the underlying resilience of your company,” Sahney said.
The company is also accelerating investment in its core refining operations. Expansions at Panipat, Gujarat and Barauni are expected to raise IOC’s group refining capacity from 80.75 million tonnes a year to about 98 million tonnes.
As India expands its refining capacity toward 300 million tonnes a year, IOC expects to account for more than 40 per cent of the incremental capacity, he said.
The company is simultaneously seeking to reduce its dependence on its traditional refining business, targeting higher contributions from petrochemicals, natural gas, renewables, biofuels, green hydrogen and sustainable aviation fuel.
It plans to raise its petrochemical intensity to about 15 per cent by 2030 and increase natural-gas sales 1.5 times by the same year. It also aims to raise upstream integration to more than 10 per cent by 2031.
On the energy-transition front, construction has begun on a large-scale green hydrogen plant at Panipat, while IOC has received ISCC CORSIA certification for sustainable aviation fuel production through co-processing at the refinery. Its renewable-energy arm Terra Clean is developing 1 gigawatt of capacity, with another 4.3 gigawatts under preparation.
Sahney said the experience of the West Asia crisis had reinforced the need to build resilience before disruptions occur.
“Resilience has to be built before it is tested,” he said. “In an uncertain world, energy security depends not only on scale, but equally on agility, diversification and preparedness.” He said IOC’s approach would be to evolve into a more diversified and integrated energy company while keeping national energy security at the centre of its strategy.
“In moments of national need, the country’s energy security comes first,” he said.