OIL MINISTRY
CNG retailers want price hike, govt wants to see cost
City gas companies in India, including IGL and Adani Total Gas, are considering raising CNG prices due to reduced supplies of cheaper natural gas. Government officials argue that these companies have substantial profit margins and should absorb the increased costs instead of passing them on to consumers.
Oilfield amendment bill to provide policy stability, says Oil Minister Hardeep Singh Puri
India will soon amend its oil and gas exploration law. The new law will make it easier for companies to invest and operate in India, minister Puri said.The government aims to increase domestic oil and gas production and reduce reliance on imports. India has significant oil and gas reserves, and the government is taking steps to unlock their potential.
Arvindar Singh Sahney will be new chairman of IndianOil
Arvindar Singh Sahney, current Executive Director at Indian Oil Corporation (IOC), has been appointed as the company's new chairman. Sahney's five-year term follows the completion of Shrikant Madhav Vaidya's extended tenure. Selected from a pool of candidates, Sahney's appointment marks his rise from a three-decade career at IOC, including a recent promotion to Executive Director.
Diesel market flashes warning sign in India as growth slows
India's diesel demand experienced stagnation in October, marking a potential shift in the nation's fuel consumption patterns. This slowdown, attributed to factors like a cooling economy and evolving consumer preferences, raises concerns for the global oil market.
Subsidies to oil & gas sector reduce 85 pc in 10 years to 2023: MNRE
India has significantly reduced its oil and gas subsidies by 85% since 2013, according to the Ministry of New and Renewable Energy. This strategic move, which involved phasing out petrol and diesel subsidies and increasing taxes, has freed up funds for renewable energy projects, electric vehicles, and critical electricity infrastructure.
ONGC ups capex at Rs 15,550 crore in Q2
Oil and Natural Gas Corporation has doubled its capital expenditure to ?15,550 crore in the second quarter. ONGC has spent ?23,550 crore in the first six months, moving closer to its annual capex target of ?30,800 crore. State-run oil companies together spent around ?67,000 crore in the first half of the fiscal year.
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Petrol, ATF sales surge 8.5% in Oct
Petrol and jet fuel sales increased by around 8.5% in October due to higher travel during the festive season. Diesel sales remained stagnant, affected by factors such as high rainfall and a shift towards electricity by farmers and railways. LPG sales rose by 7.5%.
Blended aviation turbine fuel gets new category, to be taxed at 2% for regional connectivity
The Centre has categorized blended aviation turbine fuel under mineral items, introducing excise duties, and is considering voluntary use by 2024 and mandatory by 2027. The aviation industry is concerned about increased fuel costs and potential need for incentives, with ongoing consultations among various ministries.
ONGC head should be chairman of subsidiary HPCL, says synergy panel
A panel has recommended that the ONGC Chairman should also head its subsidiary HPCL to ensure cohesive corporate governance. Despite ONGC's acquisition of HPCL in 2018, HPCL has operated with its own chairman, creating disjointed management. The report suggests appointing CEOs for subsidiaries who report to the ONGC Chairman, aiming to streamline operations and enhance synergies.
Oil ministry seeks to reform itself to address future energy challenges
The Ministry of Petroleum and Natural Gas is seeking to restructure and enhance its policy-making effectiveness for future energy sector challenges. A consultant will be appointed to help design strategic initiatives targeting 2047, envision MoPNG's future roles, and address skill gaps within the ministry.
India considers scrapping windfall tax on crude oil: Relief for Reliance Industries and ONGC?
India's finance ministry is considering removing the windfall tax on crude oil production due to a substantial drop in global oil prices. This review provides potential relief for major oil firms like Reliance and ONGC, which recently bid for an oilfield exploration license.
Wildlife board defers Vedanta's oil exploration plans in Hollongapar Gibbon Sanctuary
The National Board for Wildlife has delayed approval for Vedanta Group's oil exploration in Hollongapar Gibbon Wildlife Sanctuary's eco-sensitive zone due to environmental concerns. An inspection by multiple agencies, including the Assam Forest Department and wildlife experts, is planned. MP Gaurav Gogoi emphasized the need for a thorough situation assessment.
Oil use falls for second straight month in September
India, the world's third-largest oil consumer, saw oil consumption decline for the second month in September, influenced by a surprising drop in diesel demand. This trend adds pressure to global crude prices already impacted by weak Chinese demand. Vehicle sales also saw significant declines, contributing to reduced fuel consumption.
A full-blown Israel-Iran war can imperil India's oil security
India's energy security is at risk as a potential full-scale war between Iran and Israel escalates. The conflict could disrupt crucial oil and gas imports via the Strait of Hormuz, leading to higher oil prices, increased inflation, and economic instability in India. The Middle East remains a key region for India's energy imports despite growing Russian supplies.
Oil rises as Middle East conflict deepens, gains capped by global supply outlook
Oil prices rose modestly amid Middle East conflict fears, driven by Israel's strikes on Beirut and Iran's missile attacks on Israel. Although U.S. crude stockpiles unexpectedly increased, indicating ample supply, concerns over potential disruptions persist. Experts suggest OPEC's spare capacity could offset supply issues if regional tensions escalate.
Centre weighs building natural gas trading hub
India is exploring the creation of a natural gas trading hub to foster a competitive domestic market. The oil ministry recently met with industry executives, and a committee may soon be formed to launch a detailed plan. Similar to the US's Henry Hub, India's hub aims to facilitate physical and futures markets while promoting deregulation and infrastructure access.
Petrol sales rises 2.8% in September, diesel drops 2%
Petrol sales in India saw a 2.8% increase in September year-on-year, while diesel fell by 2%, indicating an oil demand slowdown. LPG sales rose by 1%. The growth rates for these fuels in September were lower than the April-August averages. Jet fuel sales jumped 9.5% driven by strong air traffic.
Gas price for Reliance hiked to $10.16; CNG, piped cooking gas rates unchanged
The government raises natural gas prices from deep-sea and high-pressure areas to USD 10.16 per mmBtu, following international trends. Prices for CNG and household cooking gas remain capped. Legacy fields' rates are now tied to Brent crude but are capped at USD 6.5 per mmBtu.
Oil companies making Rs 15/ltr profit on petrol even as consumers await big price cuts
Indian oil marketing companies are experiencing significant profits due to falling crude oil prices, but consumers have yet to see a substantial reduction in petrol and diesel prices. Despite the financial success of companies like IOC, BPCL, and HPCL, fuel prices remain high, impacting household expenses and inflation.
Low oil prices bright spot for Indian economy? Why is Finance Ministry feeling positive about recent reductions
The Finance Ministry's August review highlights that recent drops in crude oil prices are beneficial for India, despite concerns about potential global stock market corrections. Rating agency Icra notes improved margins for state-owned fuel firms, suggesting possible petrol and diesel price cuts. Domestic refining capacity is set to increase significantly in the coming years.
Oil demand growth falls 45% till August
India's oil demand growth has nearly halved this financial year, with diesel sales stagnating. Diesel sales, which make up 38% of refined product consumption, have risen just 1%. High rainfall and lower power consumption contributed to the decline. Domestic production and exports of petroleum products have also slowed.
ONGC partners Reliance for exploration bid a decade after suing it in a gas row
State-run ONGC has joined forces with Reliance Industries and UK¡¯s BP to bid for an oilfield exploration licence in the Saurashtra basin. This consortium is competing with Vedanta in the ninth exploration licensing round under the Open Acreage Licensing Policy. The collaboration follows a decade-long legal battle between ONGC and RIL over gas extraction in the KG basin.
10th oil, gas block bidding round in 2025 on liberalised terms: Oil Ministry official
India plans to offer previously restricted 'no-go' areas for oil and gas exploration in the tenth round of bidding in early 2025. This follows expected amendments to the Oilfields Act, which will expand the definition of mineral oils and decriminalize certain offences, aiming to boost domestic production.
Petrol, diesel price cut before Maha elections? Oil Minister official says prices volatile
International oil prices remain volatile, causing uncertainty in petrol and diesel price reductions despite lower input costs. State-owned fuel retailers have not revised rates since late 2021, citing volatility. Petrol and diesel prices are currently frozen, with potential cuts before Maharashtra elections uncertain.
India plans oil, gas exploration licensing round in early 2025, source says
India plans to launch a new oil and gas exploration licensing round early next year, a source from the oil ministry said.
India plans to push LNG for trucking in bid to curb emissions
India plans to cut trucking industry pollution by converting a third of long-haul trucks from diesel to liquefied natural gas (LNG) and mandating that a third of new trucks run on LNG. This move aligns with Prime Minister Narendra Modi¡¯s goal to increase the share of natural gas in the energy mix by 2030.
Aim to shift a third of trucks to LNG in 5-7 Years: Oil Ministry
The Indian government aims to have liquefied natural gas (LNG) power a third of the country's long-haul heavy-duty vehicle fleet within 5-7 years, with plans to use domestic gas for this initiative. The proposal includes stabilizing LNG prices by allocating 0.5 million metric standard cubic meters per day of domestic gas for the next three years, sufficient to support 50,000 trucks.
Independent natural gas transport system operator likely soon
The oil ministry discussed plans to establish an Independent Transport System Operator (TSO) to manage the natural gas pipeline's common carrier capacity. The TSO aims to ensure fair access for all gas marketers by eliminating potential conflicts of interest. Initially proposed in 2020, the plan is being revisited following industry demand.
India's July fuel use gains over 7% y/y
On a monthly basis, demand fell by 1.7% in the world's third-biggest oil importer and consumer.
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