India Bunker Fuel Market Overview, 2030

India’s bunker fuel market is an essential component of the country's rapidly expanding maritime industry, and its significance continues to grow, especially with India’s strategic positioning as a major hub for international trade. Spanning a vast coastline of more than 7,500 kilometers, India is home to numerous critical ports like Mumbai, Chennai, Kolkata, and Visakhapatnam, all of which serve as major centers for the movement of goods between India and the global market. The large number of commercial vessels that traverse these waterways, including bulk carriers, container ships, tankers, and passenger vessels, creates a substantial demand for bunker fuel, which is necessary to power these vessels on their long voyages. As India’s role in global trade continues to increase, the demand for bunker fuel to keep these ships operational has surged. This trend is further supported by the ongoing modernization and expansion of India’s port infrastructure, which enhances the country’s ability to handle growing shipping traffic. Additionally, the increasing involvement of Indian shipping companies in international operations and the increasing frequency of vessels that dock at Indian ports contribute to the heightened need for reliable and consistent fuel supplies. At the same time, the international maritime industry is governed by strict environmental regulations, including the International Maritime Organization’s (IMO) 2020 sulfur cap, which is encouraging the shift toward cleaner and more environmentally friendly fuel options.

According to the research report "India Bunker fuel Market Overview, 2030," published by Bonafide Research, the India Bunker fuel market is anticipated to grow at more than 4.93% CAGR from 2025 to 2030. The bunker fuel market in India is diverse, with demand being split between different types of marine fuels, including heavy fuel oil (HFO) and marine gas oil (MGO). HFO remains the primary choice for large vessels, including cargo ships, oil tankers, and bulk carriers, due to its cost-effectiveness and high energy content, making it suitable for long voyages. However, as environmental regulations become stricter and ship owners and operators aim to comply with international emission standards, MGO has become a popular alternative, especially for smaller vessels operating in coastal regions or more regulated waters. MGO is known for its cleaner burning properties, producing fewer pollutants and contributing to lower sulfur emissions, which has made it a preferred fuel option for vessels operating in emission control areas (ECAs). The growing awareness of environmental sustainability and the need for cleaner fuel alternatives has also led to increased interest in liquefied natural gas (LNG), which is regarded as a cleaner option with even lower emissions compared to both HFO and MGO. As part of its efforts to comply with global emissions regulations, India’s bunker fuel market has seen investments in the infrastructure needed to accommodate LNG as a viable marine fuel. The country’s expanding network of refueling stations and the construction of new bunkering terminals are critical in ensuring a reliable fuel supply for vessels. In addition to fuel quality, there is also a rising demand for advanced fuel management technologies in India, which allow for better monitoring and optimization of fuel consumption. The fluctuating price of crude oil, along with geopolitical factors such as tensions in oil-producing regions, also plays a significant role in shaping India’s bunker fuel market, as any changes in global fuel prices can have a direct impact on the cost of bunker fuel.

In India, the bunker fuel market is an essential component of the nation’s growing maritime industry, serving a variety of vessels that operate along its vast coastlines and navigate international waters. Among the primary types of fuel used, High Sulfur Fuel Oil (HSFO) remains an important choice, particularly for vessels that are equipped with exhaust gas cleaning systems or scrubbers. These systems help vessels meet the international emission regulations while still using fuels with higher sulfur content, often more cost-effective for long-haul voyages. Although global trends are moving towards cleaner fuels, HSFO continues to be widely used in India’s bunker fuel market, particularly for vessels operating on routes where scrubbers can mitigate the impact of sulfur emissions. Marine Gas Oil (MGO) is another key fuel type in India’s bunker sector, chosen primarily for vessels that require a cleaner-burning fuel with lower sulfur content. MGO is more environmentally friendly than HSFO and is often selected by vessels that operate within regions enforcing stricter emission standards, such as port areas or coastal waters. The growing focus on reducing maritime pollution has brought Liquefied Natural Gas (LNG) to the forefront of India’s bunker fuel market. LNG is praised for its environmental advantages, as it emits fewer sulfur and carbon emissions compared to traditional marine fuels. With India’s efforts to reduce its environmental footprint, LNG is increasingly seen as a viable alternative to conventional bunker fuels. Moreover, other fuel types, including biofuels, methanol, ammonia, and hydrogen, are gaining attention as the maritime industry explores more sustainable options to reduce its carbon footprint.

Container ships, which are used to transport goods in standardized containers, are some of the largest consumers of bunker fuel in the country. These vessels, due to their large size and long-distance operations, rely heavily on fuels like HSFO and MGO to power their engines and maintain efficient performance on international shipping routes. India, with its booming trade and extensive cargo movement through ports like Mumbai, Chennai, and Kolkata, sees significant fuel demand from this sector. Bulk carriers, designed for the transportation of unpackaged bulk goods such as coal, iron ore, and grain, are another substantial segment of the maritime industry that heavily contributes to bunker fuel consumption. These ships are integral to India’s export activities, particularly in the mining and agricultural sectors, and require large amounts of fuel to operate efficiently across long distances. Oil tankers, which are responsible for the bulk transportation of crude oil and petroleum products, are also major consumers of bunker fuel in India. These vessels, which transport petroleum products across international waters, typically use high-sulfur fuels like HSFO, given their operational characteristics and engine configurations. Chemical tankers, which transport liquid chemicals, often in bulk, require specialized fuels to meet safety and operational needs. Their complex nature demands careful attention to fuel type to avoid potential hazards associated with the transport of hazardous materials. General cargo ships, which are designed to carry a wide range of goods that do not fall into specific categories like containers or bulk goods, also contribute to bunker fuel consumption.

Large multinational oil companies, such as Shell, BP, and ExxonMobil, dominate the market, controlling the entire supply chain from refining to bunkering. These companies have a global reach, with extensive infrastructure and resources that enable them to supply fuel to large international shipping lines operating across multiple ports in India. Their scale and global presence allow them to offer competitive pricing, reliable fuel supply, and compliance with international fuel standards, making them the preferred suppliers for many shipping companies that require a consistent and quality fuel supply. Alongside these oil majors, large independent distributors like Bunker Holding and World Fuel Services play a significant role in India’s bunker fuel market. These non-integrated distributors, although not part of the large oil corporations, maintain a strong market presence by servicing key ports and providing reliable fuel supply to a wide range of shipping companies. They are able to offer flexibility and specialized services, catering to the needs of both large and smaller vessels. Smaller independent distributors also operate in more localized markets, often focusing on specific ports or regional areas. These suppliers, though smaller in scale, are essential in servicing smaller vessels, ferries, and domestic shipping routes, providing fuel where large distributors may have a limited presence. The distribution system in India is thus well-equipped to meet the diverse and growing demand for bunker fuel, with multiple players ensuring availability and reliability across the country's extensive network of ports.



Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Bunker Fuel Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• High Sulfur Fuel Oil (HSFO)
• Marine Gas Oil (MGO)
• Liquefied Natural Gas (LNG)
• Other Fuel Types

By Application
• Container Ships
• Bulk Carriers
• Oil Tankers
• Chemical Tankers
• General Cargo Ships
• Others

By Distribution Channel
• Oil Majors
• Large Independent Distributors
• Small Independent Distributors

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.