Hindustan Petroleum Corporation Limited (HPCL), one of India’s leading integrated energy companies, and Castrol India, a major manufacturer and marketer of automotive and industrial lubricants, have entered into a Memorandum of Understanding to jointly examine the creation of a Re-Refined Base Oil (RRBO) ecosystem in India. As part of the MoU, HPCL and Castrol India will collaborate on evaluating a structured system for collecting used lubricating oil and processing it through re-refining for reuse in lubricant manufacturing. The partnership will study whether a large-scale circular approach can be built in a commercially viable, operationally workable, and technically reliable way.
Ch Srinivas, Executive Director – Lubes, HPCL, said the initiative aligns with emerging priorities in the energy sector. He noted that as markets evolve, improving reuse and recovery within supply chains will become increasingly important. He added that the collaboration will explore a formalised collection and re-refining mechanism for used oil to help retain material value and encourage more responsible use of resources.
Commenting on the agreement, Saugata Basuray, Interim CEO, Castrol India, said used oil can deliver significant value when collected and processed through proper channels. He stated that the MoU will help assess a model that can cut waste, reduce environmental impact, and support India’s increasing emphasis on circular economy practices. He added that Castrol looks forward to working with HPCL to examine how such an approach could be implemented at scale.
India generates substantial quantities of used lubricating oil every year, much of which remains poorly collected or is disposed of through informal practices. Global research indicates that re-refining can recover nearly 70–80% of used oil as high-quality base oil, while requiring far less energy compared with producing virgin base oils from crude. International experience also shows that RRBO, when processed to required standards, can match the performance of conventional base oils.
The two companies will begin assessment work immediately. Activities will include identifying existing collection routes, reviewing re-refining capabilities, and testing RRBO across lubricant formulations to evaluate suitability and performance. The results of this study will be used to determine the next steps for the initiative.
HPCL, established in 1974, is a Maharatna CPSE with a strong presence in refining and marketing petroleum products in India. During 2024–25, the company recorded its highest sales volume of 49.8 MMT and processed 25.3 million tonnes of crude. HPCL operates refineries in Mumbai and Visakhapatnam, manages one of India’s largest petroleum product pipeline networks, and runs over 24,000 retail outlets. It also maintains a Bengaluru-based R&D Centre supporting innovation and sustainability initiatives.
Castrol India Limited, part of the bp group, has been operating in India for 115 years and is recognised for innovation in high-performance lubricants. Its portfolio includes brands such as Castrol CRB, Castrol GTX, Castrol Activ, Castrol MAGNATEC, Castrol EDGE and Castrol POWER1. Castrol India serves multiple sectors including automotive, mining, industrial machinery and wind energy, and operates three blending plants supported by a distribution network reaching more than 150,000 retail outlets across the country.
