Largest Producer of Petroleum Oil in India: Petroleum, often called "Black Gold," is a thick liquid found deep underground. It is a fossil fuel that formed millions of years ago when tiny sea plants and animals died and settled on the ocean floor. Over time, heat and pressure turned their remains into oil. In India, crude oil is found in Rajasthan, Gujarat, Assam, and offshore areas such as the Mumbai High. However, recent global events, such as the Israel-Iran crisis, have made oil even more important. In this article, we'll look at the top oil-producing states and how they help power India.
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Which State is the Largest Producer of Petrol in India?

Rajasthan has changed from a desert region into a major centre for petroleum in India. The state now produces around 20-25% of the country’s domestic crude oil. Most of this oil is found in the Barmer-Sanchor Basin in western Rajasthan, where large oil fields such as Mangala, Bhagyam, and Aishwariya are located.
The oil in this region lies deep below the ground in layers of sandstone. It formed millions of years ago from ancient organic material that was buried and exposed to intense heat and pressure.
Today, companies such as Cairn Oil & Gas (Vedanta) use modern technology to bring this "Black Gold" to the surface. From Barmer, the crude oil is sent through the world’s longest continuously heated pipeline, about 700 kilometres long, to refineries in Gujarat.
List of Top 5 Oil Producing States in India
Rajasthan, Gujarat, and Assam continue to dominate onshore production, accounting for over 95% of India's total onshore crude oil. Here is the list of the top-producing onshore states:
| Rank | State | Key Districts / Fields | Approx. Annual Production (MMT) |
| 1 | Rajasthan | Barmer Basin (Mangala, Aishwariya) | 4.8 – 5.1 |
| 2 | Gujarat | Ankleshwar, Mehsana, Kalol, Cambay | 4.6 – 4.9 |
| 3 | Assam | Digboi, Naharkatiya, Moran-Hugrijan | 4.0 – 4.2 |
| 4 | Tamil Nadu | Cauvery Basin (Narimanam) | 0.30 – 0.35 |
| 5 | Andhra Pradesh | Krishna-Godavari Basin | 0.20 – 0.25 |
Offshore areas are still India’s main source of petroleum, providing almost half of the country’s total production. The Western Offshore, led by the well-known Mumbai High field, is the most productive and uses advanced platforms such as Sagar Samrat.
At the same time, the Eastern Offshore in the Krishna-Godavari Basin is seeing more deep-water exploration. With the 2026 "Mission Samudra Manthan", the government is speeding up deep-sea drilling to strengthen energy security.
Key Data & Facts
- National Production: India’s total crude oil production for the first half of FY26 (2025-26) rose by 3.3% to reach 15.6 Million Metric Tonnes (MMT).
- Consumption: India is the world’s third-largest oil consumer, using over 5.5 million barrels per day.
- Import Reliance: Even with Rajasthan's high production, India still imports over 85% of its crude oil needs to keep up with demand.
Did You Know?
- Before 2004, Rajasthan was not known for oil. The discovery of the Mangala field in the Thar Desert was the largest onshore oil discovery in India in over 20 years.
- While Rajasthan is the largest producer today, Assam is the oldest. The Digboi well in Assam was the first oil well dug in Asia (in 1889).
- The crude oil from Rajasthan is "waxy", meaning it can solidify at room temperature. This is why the pipeline carrying it to Gujarat must be heated all the way.
- If we count regions instead of states, Mumbai High (located in the Arabian Sea) is still the overall leader, producing more than any single state.
- Because India imports so much oil, local petrol prices are directly affected by global events. For instance, recent tensions in the Middle East (Israel-Iran crisis) caused global oil prices to fluctuate near $90-$100 per barrel in early 2026.
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Which State Is The Largest Producer Of Crude Oil In India?

Rajasthan is currently the largest onshore producer of crude oil in India. It contributes nearly 24% of the country's total domestic production. The state's primary output comes from the Barmer-Sanchor Basin, where major fields like Mangala, Bhagyam, and Aishwariya are located.
Which 5 States Of India Have Oil Fields?
The five primary states with significant oil fields are Rajasthan (Barmer Basin), Gujarat (Cambay Basin), Assam (Brahmaputra Valley), Tamil Nadu (Cauvery Basin), and Andhra Pradesh (Krishna-Godavari Basin). While Assam hosts the oldest fields, Rajasthan and Gujarat dominate current onshore volumes.
What Are The Top 3 Oil-Producing States?
Rajasthan, Gujarat, and Assam are the top three oil-producing states in India. These states together produce more than 95% of the country’s onshore crude oil. Rajasthan is the largest producer, with Gujarat’s fields in Mehsana and Ankleshwar close behind.
Who Is The 4th Largest Supplier Of Crude Oil In India?
According to 2025-2026 data, Saudi Arabia is usually the third or fourth largest international supplier to India. Russia is the top supplier, with Iraq and the UAE next. Saudi Arabia still supplies a large share of India’s energy imports. Within India, Tamil Nadu ranks fourth among onshore-producing states, but its output is much lower than the top three.
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Which State Is The Richest In Oil?
Rajasthan is considered the richest in active onshore production and untapped potential in the Barmer region. However, for total reserves including offshore, the area off the coast of Maharashtra (Mumbai High) is the wealthiest. Historically and geologically, Assam is also rich, holding some of the deepest and oldest hydrocarbon traces in Asia.
Which State Is The Oldest Oil Field In India?
Assam is home to the oldest oil field in both India and Asia. The Digboi Oil Field, found in the Tinsukia district, started producing oil commercially in 1889. According to legend, elephants hauling logs led to the discovery of oil there. Even after more than a hundred years, Digboi still stands as a symbol of India's energy history and continues to produce oil.z
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