Indian Oil to Begin Sustainable Aviation Fuel Production at Panipat Refinery

Indian Oil Corporation, the country’s largest refiner, is set to commence sustainable aviation fuel (SAF) production at its Panipat refinery in December. 

As per The Economic Times report, Chairman A. S. Sahney confirmed, “Indian Oil Corporation, the country’s largest refiner, will begin producing sustainable aviation fuel (SAF) in December.” The dedicated SAF unit at Panipat, Haryana, will deliver 35,000 tonnes per year, a capacity designed to meet all of India’s mandated international aviation requirements by 2027.

Blending Mandates, Costs and Feedstock Assurance

As per news reports, India has rolled out a phased blending obligation for SAF in jet fuel, starting at 1% for international flights in 2027, ramping up to 2% by 2028. While sustainable aviation fuel is expected to cost nearly 3 times more than conventional aviation turbine fuel (ATF), Sahney said airlines “must comply with the blending mandate” so the company will not struggle to secure buyers. If local demand does not absorb Panipat’s full output, Indian Oil will consider exports.

Used cooking oil (UCO) has been selected as the feedstock for this SAF initiative. Sahney explained, “Arranging feedstock is not a challenge. There is an ample collection of UCO in the country, most of which is currently exported.” The corporation will leverage established UCO supply chains, drawing oil predominantly from large hotels, restaurant groups, and traditional snack producers.

Certification and Unique Market Position 

The Panipat facility has been awarded ISCC CORSIA certification, a requirement for commercial-scale SAF production. Sahney noted that Indian Oil is “currently the only company in India to hold this certification for producing SAF from used cooking oil,” which remains valid for the next year. This milestone firmly establishes Indian Oil as a pioneer in India’s sustainable aviation sector, particularly for SAF derived from UCO.

Also Read: India Boosts Russian Oil Imports to 2 Million bpd in August Despite US Pressure!

Indian Oil Share Price Performance 

As of August 18, 2025, at 1:45 PM, Indian Oil Corporation share price is trading at ₹140.38 per share, reflecting a gain of 0.18% from the previous closing price. Over the past month, the stock has declined by 6.45%.

Conclusion

Indian Oil’s foray into SAF at the Panipat unit is a landmark move for India’s green aviation ambitions, backed by strong feedstock networks and regulatory compliance. As the only certified SAF producer in India using used cooking oil, Indian Oil is positioned to not only meet domestic airline mandates but to pursue export opportunities as needed, setting fresh benchmarks for sustainable aviation in the country.

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