India bunker fuel market is growing as maritime trade expands and strict regulations boost demand for cleaner, efficient marine fuels during 2026–2030F.

According to the TechSci Research report titled “India Bunker Fuel Market - By Region, Competition, Forecast & Opportunities, 2030F”, the India bunker fuel market was valued at USD 27.8 billion in 2024 and is projected to reach USD 36.53 billion by 2030, growing at a CAGR of 4.5% during the forecast period. This growth is primarily driven by the rapid development of the country’s domestic shipping sector, which is supported by government initiatives aimed at strengthening maritime infrastructure and logistics.

India’s maritime economy has experienced significant transformation over the past few years. With projects like Sagarmala, which focuses on port modernization and connectivity, and the development of inland waterways, the government has laid a strong foundation for domestic and international shipping activity. As a result, coastal trade and the movement of goods within the country have increased substantially. This uptick in trade volume directly boosts the demand for bunker fuels, which are essential for powering cargo and container vessels, tankers, and other types of ships.

The expansion of the coastal shipping network and the introduction of new intra-national shipping routes have added further momentum to the demand for bunker fuel. More domestic vessels are being deployed, regional shipping operations are increasing, and ports are witnessing higher throughput, all contributing to the positive trajectory of the bunker fuel market. As these developments continue, they will play a vital role in propelling India’s economic growth and enhancing its maritime capabilities, particularly in terms of logistics and international trade competitiveness.

South India Emerges as a Key Growth Region for Bunker Fuel Demand

Among all regions, South India stands out as the fastest-growing market for bunker fuel in the country. This region includes prominent ports such as Chennai, Visakhapatnam, and Kochi, which are strategically positioned along vital international and regional shipping routes. These ports serve as major logistical hubs, offering advanced refueling and bunkering facilities, making them attractive to both domestic and foreign shipping companies.

Several factors have converged to position South India as a key driver of bunker fuel demand. First, the region has undergone extensive infrastructure upgrades, including the expansion and modernization of ports, which has enhanced operational efficiency and capacity. Second, there is a strong presence of industrial clusters, particularly in sectors such as automotive, manufacturing, and petrochemicals, which depend heavily on maritime transportation for imports and exports. This industrial activity directly translates to greater marine cargo movement and, hence, increased bunker fuel consumption.

Another notable factor is South India's alignment with international environmental regulations, particularly those set by the International Maritime Organization (IMO). Ports in the region have begun to support cleaner fuel alternatives, including Very Low Sulfur Fuel Oil (VLSFO) and Liquefied Natural Gas (LNG). This move not only addresses global calls for reduced emissions but also enhances the region's appeal to environmentally conscious global fleet operators. Investments in bunkering infrastructure for cleaner fuels are accelerating, underlining the South's ambition to become a leader in sustainable maritime energy.

Moreover, favorable government policies and initiatives aimed at promoting port development and foreign direct investment (FDI) have created a business-friendly climate in the South. These include dedicated economic zones, tax incentives for shipping-related investments, and funding support for cleaner fuel adoption. As a result, the South Region is well-positioned to maintain its momentum as the most dynamic and growth-oriented area within the India bunker fuel market.

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High Sulphur Fuel Oil (HSFO) Maintains Dominance Despite Environmental Regulations

When analyzed by fuel type, High Sulphur Fuel Oil (HSFO) continues to dominate the India bunker fuel market and is expected to retain its leading position through 2030. This is noteworthy given the implementation of the IMO 2020 regulation, which mandates that marine fuels used in international waters must contain no more than 0.5% sulfur, down from the previous limit of 3.5%. Despite this regulatory shift, HSFO remains prevalent in India due to its cost advantages and existing infrastructure compatibility.

Many Indian shipping operators have opted to invest in scrubber technology, which allows vessels to continue using HSFO by removing sulfur from engine exhaust gases. These scrubbers offer a cost-effective solution in the long run, especially when compared to the higher prices of VLSFO and Marine Gas Oil (MGO). Additionally, India’s port infrastructure is still largely optimized for the storage, handling, and supply of HSFO, giving it a logistical edge.

While the market is gradually transitioning to alternative fuels like LNG and biofuels, these options are not yet mainstream due to high installation and maintenance costs and limited bunkering infrastructure. The scalability of these cleaner fuel technologies remains a challenge, particularly for small- and mid-sized operators who are sensitive to fuel price fluctuations and capital expenditure.

VLSFO and MGO are expected to see increased adoption, particularly in ports and vessels involved in international trade routes, where environmental compliance is strictly enforced. However, HSFO is likely to retain its stronghold in the domestic shipping segment until infrastructure and cost barriers for cleaner fuels are addressed more comprehensively.

Conclusion

The India bunker fuel market is poised for steady growth, supported by a combination of increasing domestic shipping activities, strategic government initiatives, and gradual but consistent regulatory alignment with international standards. While cleaner fuel alternatives are on the rise, HSFO remains dominant due to its affordability and entrenched infrastructure support. The South Region is emerging as the epicenter of growth, thanks to its port modernization, strategic trade routes, and proactive regulatory compliance. As investments in maritime infrastructure and clean fuel technologies continue to rise, India’s bunker fuel market is expected to evolve rapidly, aligning economic growth with environmental sustainability.

Key market players in the India Bunker Fuel Market are: -

Indian Oil Corporation Limited
Bharat Petroleum Corporation Limited
Hindustan Petroleum Corporation Limited
Reliance Industries Limited
TotalEnergies SE
Marubeni Corporation
Vitol Group
Exxon Mobil Corporation
Shell plc
BP plc

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“The India Bunker Fuel Market presents several opportunities for growth. The shift towards lower sulfur fuels and compliance with IMO 2020 regulations opens avenues for suppliers to offer cleaner and more efficient bunker fuel solutions. The expanding maritime trade and port infrastructure development in India further create demand for bunker fuel, driving market expansion. Additionally, advancements in fuel technologies and the adoption of alternative fuels such as LNG present new opportunities for innovation and differentiation.

The increasing focus on sustainability and environmental regulations also offers a chance for companies to position themselves as leaders in green fuel solutions. Moreover, strategic partnerships with shipping companies and port operators can enhance market reach and service capabilities, providing a competitive edge in this evolving sector.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based Global management consulting firm.

“India Bunker Fuel Market By Fuel Type (High Sulphur Fuel Oil, Very Low Sulphur Fuel Oil, Marine Gas Oil, Liquefied Natural Gas, Other), By Vessel Type (Containers, Tankers, General Cargo, Bulk Carriers, Other), By Region, Competition, Forecast and Opportunities 2020-2030F”, has evaluated the future growth potential of India Bunker Fuel Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India Bunker Fuel Market.

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