Oil & Gas
July petrol sales up 10%, diesel 4.3%
Petrol sales rose 10% and diesel 4.3% in July compared to the previous year as economic activity gained pace, according to oil ministry data. Jet fuel consumption expanded by 9%, while cooking gas sales increased by 11% in July.
Oil firms hike ATF price by 2%, commercial LPG up Rs 6.5 per cylinder
Jet fuel prices in India have been hiked by 2% and commercial LPG used by hotels and restaurants by Rs 6.5 per 19-kg cylinder in the national capital, Mumbai. This is the second consecutive monthly increase in jet fuel rates, following a 1.2% hike on July 1 and a 6.5% reduction on June 1. The price of commercial LPG has also increased by Rs 6.5 to Rs 1,652.50 per 19-kg cylinder.
India slashes windfall tax on crude to Rs 4,600 per tonne
India reduced the windfall tax on domestically produced petroleum crude to Rs 4,600 per tonne from Rs 7,000 per tonne due to a drop in crude prices. The export duties on petrol, diesel, and aviation turbine fuel remained nil. The new rates took effect on August 1, as announced by the CBIC.
Russia bans gasoline exports in Sept-Oct 2024, reports TASS
Russia's gasoline stocks in 2024 are 1% higher than last year's level, Sorokin said, adding that gasoline exports in July 2024 were down 33%.
HPCL scouts for LNG deals, hopes to start LNG terminal by December
India's Hindustan Petroleum Corp Ltd (HPCL) seeks LNG import deals as it plans to start its 5 million tpy LNG terminal in western India by year-end, according to finance head Rajneesh Narang. The terminal will meet gas needs for HPCL's refineries, including a new Rajasthan project, and improve refining margins.
Private refiners RIL & Nayara Energy grow local market share as export margins dip
Reliance, which operates pumps in a joint venture with UK's BP, retailed 73% more diesel last quarter, while Nayara recorded a 13.5% increase, according to industry data. The robust performance expanded RIL-BP's market share to 4.24% from 2.48% a year ago. Nayara's share grew to 5.35% from 4.79%. The combined share of state-run refiners-Indian Oil, Hindustan Petroleum and Bharat Petroleum-eroded to 90.3% from 92.7% in the quarter as their sales fell 1%.
India to boost refining capacity to 6.19 mln bpd by 2028, says minister
India's refining capacity is set to grow by about 20% to 309.5 million metric tons by 2028 to address increasing fuel demand, said the junior petroleum minister. The existing capacity is around 5.14 million bpd. Strategic petroleum reserves would cover 9.5 days of crude oil needs, and new storage facilities have been approved in Odisha and Karnataka.
India only country where petrol, diesel prices declined in last 3 years: Hardeep Singh Puri
Union Petroleum and Natural Gas Minister Hardeep Singh Puri stated on Monday that India is unique in having reduced petrol and diesel prices between November 2021 and April 2024, contrasting with rising prices in other countries. He attributed this decrease to bold decisions by the Prime Minister.
No plan to mandate blending of ethanol with diesel: Govt
The government stated that ethanol blending with diesel is experimental and there are no plans to mandate it due to issues like deposit formation in fuel tanks. Minister Hardeep Singh Puri emphasized the need for further testing and safety considerations. Ethanol blending with petrol, however, has reached 15%, targeting 20%.
Older petroleum product pipeline tariff to rise 17% after PNGRB's new regulation
The Petroleum and Natural Gas Regulator Board (PNGRB) announced that starting next month, tariffs for older petroleum product pipelines in India would rise by 17%, followed by a 3.4% annual increment to account for inflation. This change replaces the regulation that had been in place since December 2010. The adjustment aims to provide financial stability and support infrastructure growth. For pipelines operational before December 2010, the tariff will be 75% of basic railway freight for all products except LPG, which will remain at 100%.
Must Watch
MRPL issues expression of interest to sell jet fuel term supplies, sources say
MRPL plans to sell 240,000 metric tons of jet fuel in term supplies from September to February. Interested buyers must submit proposals by July 31 to offload cargo between the 1st-28th of each month. This exploratory move, not an official sale tender, offers limited buyer obligations. MRPL has not offered term cargoes in the past two years.
India raises US oil imports in June, cuts Russia, data shows
India is the world's third-biggest oil importer and consumer, importing more than 80% of its oil needs. Indian refiners had placed orders in May for most of the June-arrival oil barrels.
Reliance gets US approval to resume crude imports from Venezuela
Reliance Industries Ltd. has received US approval to import oil from Venezuela despite sanctions, with plans to start soon. Reliance previously accounted for 90% of India's Venezuelan crude imports. The US lifted and then reinstated sanctions; oil companies are seeking permits to continue operations. Venezuelan exports reached a high in June.
After bumper profits, govt scraps Rs 30,000 cr capital support to oil cos
Finance Minister Nirmala Sitharaman cancelled a Rs 30,000 crore equity infusion for Indian Oil, Bharat Petroleum, and Hindustan Petroleum due to record FY24 profits. Interim support was Rs 15,000 crore. Prices remained low April-September 2022, with provided LPG subsidies and resisted daily revisions. ONGC, GAIL aim for net-zero emissions. FY23 losses were driven by the oil crisis.
Centre drops plan to infuse Rs 15,000-crore equity in OMCs
The government has dropped the Rs 15,000 crore infusion plan for profitable Indian Oil, Bharat Petroleum, and Hindustan Petroleum, reporting Rs 80,986 crore in 2023-24 from Rs 1,138 crore prior. Allocating Rs 332 crore for petroleum research and Rs 388 crore for the continental shelf. Self-sufficient companies borrow at competitive rates. BPCL, HPCL shares fell, Sensex marginally up.
Indian Oil sets out its non-oil business plan
Indian Oil Corp aims to triple natural gas sales and increase renewable energy capacity to 31 GW by 2030, while building 5 GWh of lithium-ion battery-making capacity by 2031. The company is diversifying its energy offerings, including a strategic agreement with Japan's Panasonic Energy to explore lithium-ion battery manufacturing opportunities in India.
