Indian Oil PSUs to Invest ₹1.11 Lakh Cr as Capex in FY23
Oil and Natural Gas PSUs under the Government of India’s Ministry of Petroleum and Natural Gas (MoPNG) will collectively spend ₹1,11,354.01 crore as capex investment in FY23. This is 6.2% higher than the capex investment of ₹1,04,870.29 crore for FY22.
Sector-wise Capex Investment by Oil and Gas PSU’s for FY23 in Comparison to Budgeted Capex for FY22
The total capex amount of ₹1.11 lakh crore will be divided amongst exploration and production operations, refinery and marketing operations, and the petrochemical sector.
For exploration and production, the collective capex of oil PSUs in FY23 will be ₹50,535.98 crore. This is 2.2% more than ₹49,435.68 crore allotted for the same in FY22.
For refining and marketing the capex in FY23 will be ₹53,876.35 crore, which is 8.2% higher than ₹49,803.58 crore allocated for the previous fiscal year.
Capex earmarked for the petrochemical sector is ₹6,741.68 crore in FY23, which is 24% higher compared to ₹5,441.03 crore in FY22.
Besides this, ₹200 crore have been allocated for engineering sector PSUs under the MoPNG. This amount is a 5.3% increase from ₹190 crore that was allotted for the same in FY22.
Details of FY23 Capex Investment by Different Oil and Gas PSUs
ONGC, IOCL, GAIL (India) Ltd, BPCL, HPCL and OIL shall together spend 7.4% more than the capex allocation in the previous financial year’s Union Budget.
Budgeted Capex Allocation for some Indian Oil and Gas PSU’s for FY23

ONGC’s planned capex for FY23 is ₹29,950 crore, which is slightly higher than ₹29,800 crore that had been earmarked as its capex investment as per FY22 Budget. However, for ONGC Videsh, the capital expenditure for FY23 is ₹8,180.01 crore, which is lower than its budgeted investment amount of ₹8,379.99 for FY22.

IOCL plans to spend ₹28,548 crore in FY23, out of which ₹23,083.35 crore will be spent on refining and marketing operations. The total budgeted capital expenditure of IOCL for FY23 is almost the same as that for FY22, which was ₹28,547 crore.
HPCL’s capex investment for FY23 for refining and marketing operations is also the same as that for FY22, at ₹14,500 crore.

BPCL’s capex investment stands at ₹10,000 crore, the same as FY22.
GAIL will be spending ₹7,500 crore as capex investment in FY23 for gas pipeline expansion and petrochemical plants, which is 23% higher than its budgeted capex amount of ₹6,111.2 crore in FY22.
Future of Oil and Gas in India in terms of Self-sufficiency India’s crude oil import bill for the current fiscal year will exceed $100 billion as per the Oil Ministry’s Petroleum Planning & Analysis Cell (PPAC). This is a result of fall in domestic production and the increasing global oil prices. India’s self sufficiency in terms of oil has fallen from 15.6% in 2020-21 to 14.9% in 2021-22. An increase in capital expenditure by oil PSUs will help India reduce its dependence on oil and gas imports.