Budget 2026: Raja Venkatraman shares his top oil and gas stock picks
Subscribe to enjoy similar stories. As the world’s third-largest oil consumer and fourth-largest refiner, India is pursuing a twin strategy of boosting domestic hydrocarbon output while accelerating diversification into gas and cleaner fuels—a priority reflected in pre-Budget consultations. For Budget 2026, industry expectations centre on measures to incentivise exploration and faster production, with the aim of raising domestic crude output towards 100 million tonnes (MT) and gas production to 50 billion cubic metres (BCM).
There is also a push for rationalizing duties and taxes to help moderate retail fuel prices without compromising fiscal discipline. In parallel, the sugar and bio-energy industry has proposed repositioning the sector as a “bio-energy hub". Its submissions call for stronger policy support for ethanol blending, compressed biogas and green hydrogen.
Industry stakeholders have also sought a more robust National Mission on Green Hydrogen, including incentives for “green bio-hydrogen" pathways that leverage agro-based feedstock. Indian refiners, meanwhile, are recalibrating crude sourcing strategies, increasingly tapping Middle Eastern spot markets as they diversify away from Russian supplies. The shift reflects not only energy security considerations but also New Delhi’s broader trade engagement with Washington, where energy remains a key pillar of negotiations.
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