Bharat Petroleum Corporation (BPCL) plans to set up a new 12 MTPA refinery in the country, with an investment of around Rs 50,000 crore for the project.

The oil marketing company is currently evaluating locations in Andhra Pradesh, Uttar Pradesh, and Gujarat for the project which would help meet the country's growing demand for fuel and petrochemicals. The company is targeting to increase its refining capacity to 45 MTPA by FY29. Its has three refineries in Mumbai, Kochi, and Bina, Madhya Pradesh with a combined annual refining capacity of around 36 MTPA.

Moreover, BPCL plans to invest about Rs 1.7 lakh crore over the next five years in oil refining, petrochemical business and clean energy business. Of the total capex, it has earmarked Rs 75,000 crore for refineries and petchemical projects.

Fuel demand was at 233.276 million tonne (MT) in FY24, compared to 223.021 MT in the previous year. To cater to the increasing oil demand, the government is looking to increase refining capacity by nearly 80 percent, from the present 252 MTPA to about 450 MTPA by 2030.