Question

Most of the oil refineries in India are located close to oilfields or ports. Why?

Answer 1

Most of the oil refineries in India are located close to oilfields or ports for two major reasons:

1. To Process Domestic Supply: Refineries established near oilfields (such as Digboi in Assam) can process crude oil directly at the source. This reduces local transportation expenses and ensures a direct, efficient link between the extraction wells and the processing plants.
2. To Minimize Import Transport Costs: India imports more than 80% of its crude oil requirements. Setting up refineries near ports (such as Jamnagar, Mangalore, or Mumbai) enables enormous international oil tankers to discharge imported crude oil straight into refinery storage tanks. This saves the costly and logistically challenging task of transporting raw, unrefined heavy crude over vast distances inland.