New Delhi, Jan. 22 -- As the world's third-largest oil consumer and fourth-largest refiner, India is pursuing a twin strategy of boosting domestic hydrocarbon output while accelerating diversification into gas and cleaner fuels-a priority reflected in pre-Budget consultations.

For Budget 2026, industry expectations centre on measures to incentivise exploration and faster production, with the aim of raising domestic crude output towards 100 million tonnes (MT) and gas production to 50 billion cubic metres (BCM). There is also a push for rationalizing duties and taxes to help moderate retail fuel prices without compromising fiscal discipline.

In parallel, the sugar and bio-energy industry has proposed repositioning the sector as a "bio-en...