Vadodara: The Indian Oil Corporation’s (IOC) Gujarat Refinery in Vadodara is making a significant investment of ₹24,000 crore to expand into the petrochemicals sector by launching two new units in 2025.

As the energy sector in India rapidly evolves, IOC is preparing for a future with potentially reduced fuel demand. Executive Director and Refinery Head Biplob Biswas stated that diversifying into petrochemicals is essential for the corporation’s long-term sustainability. The refinery already produces linear alkyl benzene (used in soaps and detergents) and sulphur bentonite. From this year, it will also begin producing polypropylene and butyl acrylate—both key raw materials for the paint industry.

New facilities with a capacity of 500 KTPA for polypropylene and 150 KTPA for butyl acrylate are being built near Vadodara.

Maintaining a refining capacity of 13.7 MTPA since 2001, the refinery is now expanding due to rising fuel demand. The delay, according to Biswas, was due to the presence of other major refiners in Gujarat and IOC’s focus on meeting evolving fuel quality norms such as BS-II to BSVI.

IOC’s total refining capacity stands at 80.55 MTPA, with the Vadodara unit originally commissioned in 1965 as a 2 MTPA facility. It sources crude oil from both domestic fields like Mehsana and Ankleshwar and international suppliers such as Russia, Nigeria, and the Middle East. DeshGujarat