India’s growing energy needs have put oil and gas companies at the centre of economic momentum. From upstream exploration to city gas distribution, the sector is undergoing a dynamic transformation driven by government reforms, clean energy targets, and global price shifts. 

In this article, we have listed the top oil and gas stocks in India that show strong potential in 2025 and beyond.

Overview of the Indian Oil & Gas Sector

Oil demand in India is expected to rise by 3.39% this year, more than twice the growth rate of China, making India a major force behind the world’s rising oil use. This surge is driven by more cities expanding, industries growing, and more vehicles on the road. Gasoline demand alone is likely to increase by 6% to 8% in the coming year, while diesel demand will rise by 4%.

To handle this demand, India is expanding its refining capacity, which was 256.8 million metric tonnes per year as of March 2024. This makes India the second-largest oil refiner in Asia. At the same time, India’s oil imports from Russia have reached a 10-month high of around 1.8 million barrels per day in May 2025.

In the natural gas sector, the market is expected to grow at a CAGR of 5.2%, from 40.10 billion cubic meters in 2025 to 51.67 billion cubic meters by 2030. Big companies like ONGC, Indian Oil, and Reliance Industries are investing heavily, especially in building infrastructure in northeastern India. These trends highlight India’s move toward better energy security and its increasing role in the global oil and gas industry.

List of Top Oil & Gas Stocks in India 2025

SNo.Oil & Gas CompaniesMarket Cap (₹ Cr)
1Reliance Industries Ltd19,30,813
2Oil & Natural Gas Corporation Ltd (ONGC)3,07,261
3Indian Oil Corporation Ltd (IOCL)2,03,431
4Bharat Petroleum Corporation Ltd (BPCL)1,38,355
5Hindustan Petroleum Corporation Ltd (HPCL)86,836
6Oil India Ltd69285
7Petronet LNG Ltd47,985
8Mahanagar Gas Ltd13,323

1. Reliance Industries Ltd

Reliance Industries has come a long way, making steady strides in gas production, oil refining, and clean energy. Over the years, it has quietly positioned itself at the heart of India’s energy transformation. In partnership with BP (Bharat Petroleum), RIL developed three major deepwater gas fields in the Krishna-Godavari (KG) D6 block: R Cluster, Satellite Cluster, and MJ.

Recent production updates show that the KG D6 block averaged 28 million metric standard cubic meters of gas per day during the October-December 2024 quarter. While slightly lower than the earlier 30 million metric standard cubic meters of gas estimate, the block still accounts for nearly 30% of India’s total gas output. Reliance also led India’s first offshore dismantling project at the Tapti field. 

In refining, RIL signed a 10-year deal with Rosneft to buy cheaper Russian oil, boosting margins at its Jamnagar plant. It is also investing ₹75,000 crore in solar modules and battery manufacturing. These moves make Reliance a strong contender among gas and oil stocks in India.

2. Oil & Natural Gas Corporation Ltd (ONGC)

Oil & Natural Gas Corporation Ltd (ONGC) is India’s one of the top oil and gas exploration stocks in India. In May 2025, ONGC announced two significant new discoveries in the Mumbai Offshore region, the ‘Suryamani’ and ‘Vajramani’ fields. During testing, Suryamani produced 2,235 barrels of oil and 45,181 cubic metres of gas per day, while Vajramani delivered 2,122 barrels of oil and 83,120 cubic metres of gas per day, marking a major boost to the company’s exploration success.

Further reinforcing its ambitions, ONGC is spearheading a $5 billion deepwater development in the KG-DWN-98/2 cluster in the Krishna-Godavari basin. This initiative, now nearing completion, is projected to add 3.1 MMcmd of gas once all four new wells come online by mid‑2025. It’s also in talks with ExxonMobil, BP, and Shell to bring advanced technologies and expertise into the project.       

3. Indian Oil Corporation Ltd (IOC)

India’s largest oil refiner IOC, is aggressively transitioning towards green energy. In 2024, it established Terra Clean Ltd, a subsidiary dedicated to renewable energy, and is now set to invest ₹1,086 crore to develop 4.3 GW of capacity, augmenting an earlier 1 GW plan. 

IOCL aims for 31 GW of renewables and 80 ktpa green hydrogen by 2030. In early May 2025, L&T secured a contract to build IOCL’s first green hydrogen plant at Panipat, producing 10,000 tonnes annually. These initiatives align with IOCL’s ₹2.4 lakh crore investment to achieve net-zero emissions by 2046.

4. Bharat Petroleum Corporation Ltd (BPCL)

 BPCL is rewriting the future of India’s energy sector. With a long-term vision to lead in both traditional and renewable energy, this Maharatna PSU is driving change through its ambitious ₹1.5 lakh crore investment strategy, Project Aspire. This includes a ₹49,000 crore expansion at Bina Refinery, featuring an ethylene cracker and capacity boost to 11 MMTPA. 

BPCL is also developing a new ₹95,000 crore refinery in Andhra Pradesh with 9 MMTPA capacity and petrochemical integration. In renewables, it has partnered with Sembcorp for green hydrogen and ammonia projects, and with Eco Wave Power to explore wave energy along India’s 7,516 km coastline. This makes BPCL one of the top gas and oil stocks for long-term investors looking at both growth and sustainability.

5. Hindustan Petroleum Corporation Ltd (HPCL)

Hindustan Petroleum is evolving beyond traditional refining, investing in large-scale infrastructure and new energy ventures to meet India’s growing demand. With a prominent Indian oil refiner, HPCL is advancing its infrastructure and diversification initiatives. The company is set to commission the 9 million metric tonnes per annum (MMTPA) Barmer refinery in Rajasthan by December 2025, with full operational capacity anticipated by March 2027. 

Additionally, HPCL is expanding the Visakhapatnam refinery’s capacity by up to 20% to meet rising fuel demand. In a strategic move towards cleaner energy, HPCL plans to invest ₹90,000 crore by 2030, allocating 30–35% to green energy projects. 

6. Oil India Ltd

Oil India Ltd, a Maharatna PSU headquartered in Assam, is aggressively expanding its upstream operations. In May 2025, it initiated exploration in Tripura’s Debtamura region under the Hydrocarbon Exploration and Licensing Policy (HELP). 

The company targets a crude oil output of 4 million tonnes and 5 bcm of gas in the next few years, supported by a 10% capex increase to ₹7,500 crore for FY26. Strategic collaborations, such as the MoU with Petrobras for deepwater exploration in the Mahanadi and Andaman basins, further strengthen its growth. These initiatives position Oil India among the best oil and gas stocks for long term investors.

7. Petronet LNG Ltd

Petronet LNG is one of India’s most stable and strategically positioned gas companies, with strong infrastructure and long-term growth plans in place. They are one of the top listed gas and oil stocks in India, runs two big LNG terminals. One in Dahej can handle 17.5 million tonnes per year and another in Kochi with a 5 million tonne capacity. 

In May 2025, Petronet is all set to expand Dahej to 22.5 MMTPA within 3-4 months to meet rising power sector demand. It also signed an MoU with Odisha to develop a 5 MMTPA land-based LNG terminal at Gopalpur, replacing earlier FSRU plans. Not only this, Petronet is constructing a ₹20,685 crore petrochemical complex in Dahej, featuring a 500 KTPA polypropylene plant using Novolen® technology.

8. Mahanagar Gas Ltd

Mahanagar Gas Ltd (MGL), a major city gas distributor in Mumbai, is known for its focus on cleaner fuels and energy efficiency. The company is now taking bold steps toward sustainability with major investments in compressed biogas (CBG) projects. This leading city gas distributor in Mumbai is advancing its sustainability initiatives by investing over ₹600 crore in two compressed biogas (CBG) plants at Deonar. These facilities will process 1,000 tons of wet waste daily, generating 36 tons of CBG per day, and are projected to yield annual revenues of ₹74 crore. 

This strategic move aligns with MGL’s capital expenditure strategy, with the company investing ₹800 crore in FY25 to add 85 new CNG stations and strengthen its pipeline infrastructure. For FY26, MGL has announced a ₹1,000 crore capex plan, aiming to set up 80 additional CNG stations and continue expanding its gas distribution network across key regions. Such initiatives strengthen MGL’s position among the best-performing oil and gas stocks in India

Key Factors to Consider Before Investing in Oil and Gas Stocks?

Here are the key factors to consider when investing in oil and gas stocks in India:

1. Commodity Price Volatility

Oil and gas prices are highly sensitive to global supply and demand dynamics, geopolitical events, and economic conditions. For instance, during the COVID-19 pandemic, oil prices plummeted due to decreased demand, leading to significant market fluctuations. Such volatility can directly impact the profitability of oil and gas companies and, consequently, their stock prices.

2. Geopolitical and Regulatory Risks

Geopolitical instability and changing regulations greatly impact oil and gas companies. Conflicts, sanctions, or policy shifts can disrupt supply chains and affect prices. Investors looking for the best gas and oil stocks for the long term must assess a company’s ability to navigate political risks and adapt to evolving energy laws to ensure steady performance and reduced volatility.

3. Environmental and ESG Considerations

Oil and gas companies can harm the environment through pollution, oil spills, and carbon emissions. Today, many investors prefer companies that care about the environment and follow good social and governance practices (called ESG). If a company scores low on ESG parameters, it may lose investor trust, face higher costs, or struggle with stricter government rules.

4. Technological Advancements and Energy Transition

The world is moving towards clean energy like solar and wind, and using less oil and gas. New technologies like electric cars and better batteries are reducing demand for fuel. If oil and gas companies don’t adapt to these changes, they might lose profits and fall behind. So, it’s important to check if a company is future-ready.

5. Company-Specific Financial Health

Before investing, check if the company is financially strong. Key metrics to consider include debt levels, cash flow, dividend history, and capital expenditure plans. A company with consistent cash flow and low debt can handle market ups and downs better and is more likely to grow and reward investors over time.

Conclusion

Investing in the top oil and gas stocks in India offers a balance of stability and long-term growth, especially in an energy-hungry economy like India. While global shifts toward renewables continue, fossil fuels remain critical. However, before investing, you should track policy trends, demand cycles, and energy diversification to make informed decisions. To invest in the top oil and gas sector stocks, open a demat account with Share.Market and start building your portfolio.

FAQs

1. Do Government Policies Influence Oil and Gas Stock Performance in India?

Government policies, such as subsidies, taxation, and environmental regulations, directly impact the profitability and operational costs of oil and gas companies. Policy shifts can lead to stock volatility, making it crucial for investors to stay informed about regulatory changes.

2. What Role Does Global Crude Oil Pricing Play in Indian Oil and Gas Stocks?

Global crude oil prices affect input costs and revenue for Indian oil and gas companies. A rise in prices can increase profits for producers but may reduce margins for refiners, influencing stock valuations accordingly.

3. Which Indian Oil and Gas Companies Focus on the Renewable Energy Segment?

Yes, companies like Reliance Industries and Indian Oil Corporation are investing in renewable energy sectors, including solar and hydrogen fuels. They aim to reduce their carbon footprint while also diversifying their operations in different energy sources, which can be less harmful to the environment and attract ESG investors.

4. Are Oil and Gas Stocks Suitable for Long-Term Investment?

Oil and gas stocks can be suitable for long-term investment due to the consistent demand for energy. However, investors should consider market volatility, regulatory changes, and the global shift towards renewable energy sources.

5. How to Invest in Oil and Gas Stocks?

To invest in oil and gas stocks, you first require opening a demat and trading account with a SEBI-registered broker such as Share.Market. After that, you need to conduct your research on individual companies’ financial health, peers, government policies, and more, so you can make an informed decision.

Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Registration granted by SEBI, enlistment as a Research Analyst with the Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The securities are quoted as an example and not as a recommendation.
This is for informational purposes and should not be considered as recommendations. Kindly refer to  https://share.market/ for more details. PhonePe Wealth Broking Private Limited, Research Analyst with SEBI Regn No: INH000013387, BSE RA Enlistment Number: 5887.