Castrol India Partners with HPCL to Recycle Used Engine Oil into Base Oil
Published: 23 Mar 2026
Author: Precedence Research
From Waste Oil to Base Oil
In January 2026 Castrol India has recently partnered with HPCL (Hindustan Petroleum Corporation Limited) to work on an important environmental project. Both companies are planning to develop a system that can turn used engine oil into useful base oil again in the current period. Also, this idea is focused on recycling oil instead of wasting it. Also, in everyday life, many vehicles and machines use engine oil. After some time, this oil becomes dirty and cannot be used again in the same form. Normally, this used oil is either thrown away or not properly recycled, which can create pollution and waste a valuable resource.
Castrol India and HPCL want to build a system where used oil can be collected from different places, cleaned properly, and then processed again to make it usable. This process is called re-refining. The oil that is produced again is known as base oil, which is the main ingredient used in making fresh lubricants.
Saving Resources with Oil Reuse
The main motive of this partnership is to support recycling and reduce waste. Instead of using new crude oil every time, the same oil can be reused after proper treatment. This can help save natural resources and reduce environmental damage caused by the improper disposal of used oil.
Moreover, both companies will study how this system can be developed in India. They will look at how used oil can be collected safely, how it can be refined again, and whether the final product meets quality standards. They will also check if this process can be made large enough to work across the country.
According to Towards Chem&Materials, the base oil market size accounted for USD 40.85 billion in 2025 and is predicted to increase from USD 42.06 billion in 2026 to approximately USD 54.69 billion by 2035, expanding at a CAGR of 2.96% from 2026 to 2035, due to a greater move toward sustainability.
Right now, this project is still in the early stages. The companies are studying and testing the idea before making it a full working system. Furthermore, this partnership is a step toward cleaner and smarter use of resources. It focuses on recycling waste oil and turning it into something useful again instead of letting it go to waste.