HPCL, Castrol India Sign MoU to Develop Re-Refined Base Oil Ecosystem in India

State-owned Hindustan Petroleum Corporation Limited (HPCL) and Castrol India have entered into a strategic partnership to evaluate the development of a re-refined base oil (RRBO) ecosystem in India, marking a significant step towards circularity and sustainability in lubricant manufacturing. 

Key Development 

Under the memorandum of understanding (MoU), the two companies will jointly assess the commercial, technical and operational feasibility of collecting used lubricating oil and re-refining it for reuse in lubricant production.  

The initiative aims to establish a structured circular model capable of operating at scale, helping reduce waste and dependency on virgin crude-based base oils. 

India generates substantial volumes of used lubricating oil annually, much of which remains under-collected or informally disposed.  

Global studies indicate that re-refining can recover nearly 70–80% of used oil into high-quality base oil while consuming significantly less energy than conventional refining methods. 

Statements  

As per exchange filings, Ch Srinivas, Executive Director –Lubes, HPCL, said, “As energy markets transition, circularity in value chains will become increasingly important. Through this partnership with Castrol India, we aim to assess a structured ecosystem for collection and re-refining of used oil, which would help recover material value while promoting responsible resource use.” 

Saugata Basuray, Interim CEO, Castrol India, said, “Used oil is a valuable resource if collected and processed in the right way. This MoU allows us to explore a model that could reduce waste, lower environmental impact and support India’s growing focus on circularity. We look forward to working with HPCL to evaluate its potential at scale.” 

Read More: 3 Debt-Free Dividend Stocks with Strong Fundamentals to Watch in 2026! 

HPCL and Castrol India Share Price Performances 

As of January 27, 2025, at 12:45 PM, HPCL share price is trading at ₹417.25 per share and Castrol India share price is trading at ₹183.62 per share.  

Conclusion 

The collaboration underscores growing industry focus on circular economy models, resource efficiency and sustainable industrial practices in India’s evolving energy and lubricant sectors. 

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