BPCL goes big on petrochemicals, raises capex as IOC and ONGC trim budgets

New Delhi: State-run refiner Bharat Petroleum (BPCL) has raised its capital expenditure plan for the coming fiscal year by 35% to Rs 25,000 crore, driven by an aggressive push into petrochemicals, even as peers Indian Oil and ONGC have trimmed their investment budgets.

Indian Oil, the country's largest refiner, plans to spend Rs 32,700 crore on capex, while top oil and gas producer ONGC has set aside Rs 30,000 crore-both about 6% lower than their FY26 spending, according to the budget document. Capex at GAIL, the nation's largest gas marketer and transporter, is slated to rise 29% to Rs 11,518 crore, while declining at Hindustan Petroleum (HPCL) and Oil India.

Overall, state-run oil companies plan to spend Rs 1.34 trillion in FY27, marginally higher than Rs 1.30 trillion this year. Of the total, Rs 60,000 crore has been earmarked for refining and marketing, a 6% decline, while spending on exploration and production is set to rise 4% to Rs 57,600 crore.


The sharpest increase is in the petrochemicals segment, where spending will jump 56% next year to Rs 16,000 crore next year.

BPCL will account for the largest share of this outlay, nearly tripling its petrochemicals investment to Rs 9,750 crore from Rs 3,500 crore this year. Indian Oil has allocated Rs 3,875 crore for petrochemicals, while GAIL has earmarked Rs 2,256 crore.

HPCL's overall planned capex for next fiscal will fall 16% to ₹9,641 crore as its Rajasthan refinery-one of its biggest spending projects in recent years-nears commissioning. Oil India's capex will edge down 2% to ₹8,653 crore.