When US Secretary of State Marco Rubio visited India this week, one of the key stops on his itinerary was Reliance Industries’ Jamnagar refinery in Gujarat, the world’s largest single-site refining complex. A day earlier, Rubio had called India a “refining superpower” and said the US wanted to explore opportunities to process more Venezuelan crude at Indian refineries.
Rubio also discussed energy cooperation with External Affairs Minister S Jaishankar, including increasing Indian purchases of American energy. His visit underlined the growing importance of India’s refining industry at a time when wars, sanctions and disruptions to shipping routes are reshaping global oil trade.
How India compares with other major refining nations?
According to the Energy Institute Statistical Review of World Energy, China leads the world in refining capacity, at around 18.5 million barrels per day (mb/d), followed closely by the US at 18.4 mb/d. China’s refining industry includes state-owned giants such as Sinopec and PetroChina, as well as large private integrated complexes operated by Zhejiang Petrochemical and Hengli Petrochemical. Russia, with a refining capacity of around 6.8 mb/d, has an extensive refining network that produces transport fuels and other petroleum products.
India ranks fourth globally in refining capacity, with 267.11 million metric tonnes per annum (MMTPA), according to the Petroleum Planning and Analysis Cell (PPAC), which roughly translates to 5.6-5.97 mb/d. South Korea, with a refining capacity of around 3.4 mb/d, also has a strong refining industry, coming in fifth position.
Why are oil refineries shutting in Europe but expanding in India?
Europe is facing mounting pressure from high operating costs, weakening demand for traditional transport fuels and competition from newer refineries in Asia and the Middle East.
According to an S&P Global report, Europe may need to shut down 500,000-700,000 barrels per day of refining capacity by 2030. The report identifies high natural gas and electricity prices, expensive labour and stringent carbon-emission rules as key challenges for European refiners. These costs make it difficult for older and less efficient plants to remain profitable, particularly when refining margins are weak.
Demand is another challenge. The growing use of electric vehicles, improvements in fuel efficiency and the shift towards cleaner energy are gradually reducing demand for petrol and diesel in Europe. At the same time, new refineries in Asia and the Middle East are increasing supplies, putting pressure on European refiners, particularly those that depend heavily on exports.
The US is also seeing refinery closures. Data from the US Energy Information Administration (EIA) show that US refining capacity declined in 2025. Its capacity was around 18.2 million barrels per calendar day on January 1, 2026, down by more than 250,000 barrels per day from a year earlier. Two major refineries closed in 2025, while smaller capacity increases at existing plants partly offset the losses. However, the US is not abandoning refining altogether. US President Donald Trump has announced plans for a new refinery project at Brownsville, Texas, involving America First Refining and an investment commitment from Reliance Industries. India, meanwhile, continues to expand its refining industry.