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Challenges and Future Prospects of India’s Petroleum Products Refineries

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WHAT ARE THE CHALLENGES AND FUTURE PROSPECTS OF INDIA’S PETROLEUM PRODUCTS REFINERIES?

Ruqayah Olowonirejuaro*

ABSTRACT: The petroleum refining industry is a vital link in the energy chain in many developing and industrialised countries as it plays a key role in providing energy for all sectors of any economy. The structure, economic conditions, and developments in the industry are therefore important matters of national interest. In recent times, significant changes have taken place in India’s refining industry with resultant challenges. This paper seeks to evaluate the challenges faced by India’s petroleum refining industry in view of its recent performance and discuss the industry’s future outlook. Pricing is identified as a most important challenge which if addressed and combined with other complementary remedies could help maximize the industry’s potentials.

*

The author is currently an MSc candidate in Energy Studies specialising in Oil and Gas Economics at the CEPMLP, University of Dundee, UK. She has a Bachelor of Science (B.Sc Hons) Degree in Accounting from Igbinedion University, Nigeria. She is a student member of the Association of Chartered Certified Accountants (ACCA), and the Energy Institute (EI). Email: oruqayah@yahoo.com

TABLE OF CONTENTS

ABBREVIATIONS............................................................................................................iii LIST OF FIGURES............................................................................................................iv LIST OF TABLES………………………………………………………………………..v 1. 2. 3. INTRODUCTION..................................................................................................1 PETROLEUM REFINING IN INDIA: AN OVERVIEW.................................2 CHALLENGES OF PETROLEUM REFINING IN INDIA.............................5 3.1 3.2 3.3 3.4 4. 5. The Need to...

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