Indian oil companies are targeting net zero by 2046 as they decarbonise operations to cut emissions and transition to cleaner fuels, Oil Minister Hardeep Singh Puri said on Monday.

While India has pledged net zero carbon emissions by 2070, state-owned companies have set targets ranging from 2038 (ONGC) to 2046 (IOC).

"Indian energy sector is on the cusp of a transition and is rapidly moving towards the centre of global oil and energy market as we are set to become a USD 5 trillion economy," Puri said, addressing the 26th Energy Technology Meet here.

India's energy demand, he said, will continue to provide fuel for future economic growth.

India is the world's 3rd largest consumer of oil, 3rd largest LPG consumer, 4th largest LNG importer, 4th largest refiner, and 4th largest automobile market.

The country is likely to account for 25 per cent of global energy demand growth over the next two decades, he said.

While the oil demand grows, Indian companies have set ambitious net zero emission targets.

The transition, he said, will be a gradual shift from fossil fuels to cleaner fuels and renewables.

The minister said high oil prices accelerate the energy transition.

On the Israel-Palestine conflict, he said India is watching the situation closely.

Oil prices rose over USD 3 a barrel on Monday following military clashes between Israel and the Palestinian Islamist group Hamas.

"So far as energy is concerned, let us be absolutely clear that the place where the action is taking place is in many respects the centre of global energy. We will watch very carefully as we go along, we will navigate our way through this," he said.

Talking about biofuel in India, he said, "We reached the target of 10 per cent ethanol blending five months beforehand. Now we are at 12 per cent, and the target of 20 per cent by 2025 can be achieved easily".

India today is the 4th largest refiner having a refining capacity of 254 million tonnes per annum after the United States, China and Russia. This refining capacity is further being increased to 310 million tonnes by 2028 with a view to becoming a major refining hub for exports of refinery products.

On the recently launched Global Biofuels Alliance, he said this presents a USD 500 billion opportunity globally as the less polluting fuel is taken up globally.