Oil & Gas
BPCL offers first gasoil cargo in over a year
According to three industry insiders, BPCL has recently put up its initial spot gasoil shipment for sale through a sales tender in over a year. BPCL aims to sell a minimum of 40,000 metric tons of gasoil with a 10ppm sulphur content, which is scheduled to be loaded on October 26-27 from Kochi. The tender will be open for submissions until October 3, with the sale being finalized on the same day.
Oil PSUs take a hit as global prices rise but local rates frozen
India's state-run refiners price their products in line with international prices, which broadly follow the global demand-supply situation while also being affected by non-market forces at times. The refinery gate prices are a key determinant of companies' gross refining margins. Companies add marketing margins, storage and transport costs, dealers' commissions and taxes to the refinery gate prices of petrol and diesel to determine the pump prices.
MGL slashes prices of CNG in Mumbai; to cost Rs 76/ kg from Oct 2
Mumbai's Mahanagar Gas Limited (MGL) has announced a reduction in the retail price of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) by Rs 3 per kilogram and Rs 2 per SCM respectively. The new rates, effective from October 2, will be Rs 76 per kg for CNG and Rs 47 per SCM for PNG.
Natural gas price ceiling for difficult fields down 18% for 6 months
The price of natural gas produced from difficult areas like deepsea KG-D6 block of Reliance Industries has been cut by 18% in line with softening international gas prices. However, the price of gas used for making CNG for automobiles or piping to households for cooking purposes will remain unchanged due to a price cap set at 30% less than market rates.
Commercial LPG cylinder price hiked by Rs 209 in setback to consumers
In a huge setback for millions of consumers, oil marketing companies (OMCs) have hiked the prices of commercial LPG cylinders by Rs 209, with effect from Sunday, according to industry sources. As a result of this, price of a 19-kg commercial LPG cylinder will now be Rs 1,731.50 from October 1 onwards in New Delhi. Dining out is set to become dearer as an immediate fallout of this hike.
ATF price hiked 5%, commercial LPG gets costlier by Rs 209, effective October 1; domestic prices unchanged
This increase in LPG prices comes on the heels of the Union Cabinet's approval of approximately 75 lakh new LPG connections under the Ujjwala Yojana in September. The initiative aims to provide these connections over the next three years at an estimated cost of Rs 1650 crore.
Centre hikes windfall tax on crude oil to Rs 12,000 per tonne
The Indian government has increased the windfall tax on domestically produced crude oil to Rs 12,000 per tonne, up from Rs 10,000. In addition, the government has reduced the windfall tax on the export of diesel and Aviation Turbine Fuel (ATF).
Russian oil sold to India at 30% above Western price cap: Traders
Russia is selling oil to India at a price of nearly $80 per barrel, which is $20 above the Western price cap. This is due to tight global oil markets and strong demand for Russian exports. India has become the top buyer of Russian oil since 2022, and the country's low inventory levels and production cuts have contributed to the increase in prices.
Declaring city gas networks as common carriers may face litigation
Previous attempts of the Petroleum and Natural Gas Regulatory Board (PNGRB) to declare city gas networks common carriers have been challenged in court. To help resolve the issue, the board issued a fresh draft regulation earlier this year - PNGRB (Guiding Principles for Declaring City or Local Natural Gas Distribution Networks as Common Carrier or Contract Carrier) Regulations, 2023 - and sought stakeholders' views.
Barauni-Guwahati pipeline to provide gas in Guwahati by end of the year
GAIL India Limited representative announced that the Barauni-Guwahati Pipeline shall be able to provide gas in Guwahati by the end of the year, thereby marking a major milestone in the linkage of the State with the National Gas Grid. This in due course shall enable the connect between producers, importers and the end-users of natural gas in a seamless manner.
Must Watch
EV sales growth points to oil demand peaking by 2030- so why is the oil industry doubling down on production?
Despite the growing sales of electric vehicles (EVs) and the decline in sales of gas- and diesel-powered vehicles, the U.S. government is still projecting an increase in demand for oil. The International Energy Agency recently forecasted a global peak in demand for oil, gas, and coal by 2030, attributing it to changes in energy policies and a rise in clean technologies, including EVs.
After BPCL, ONGC signs up HPCL for sale of oil from Mumbai offshore fields
Oil and Natural Gas Corporation (ONGC) has signed an agreement to sell crude oil from its Mumbai offshore fields to Hindustan Petroleum Corporation Ltd (HPCL). This marks the second term agreement in as many months, as ONGC prefers term contracts over auctions where refiners offer deep discounts.
Oil prices rise as supply concerns outweigh demand fears
Oil prices rose on Friday due to concerns over a Russian ban on fuel exports tightening global oil supply. This outweighed fears of potential U.S. interest rate hikes impacting fuel demand. However, oil prices were still on track for a weekly loss. The ban on fuel exports by Russia caused heating oil futures to rise nearly 5% on Thursday. The U.S. Federal Reserve maintained interest rates but projected a quarter-percentage-point increase by year-end, leading to concerns of lower economic growth and fuel demand.
EV rush makes oil marketing companies think beyond oil
Indian oil marketing companies (OMCs) such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are diversifying into electric vehicle (EV) charging infrastructure and battery swapping stations to offset the impact of lower fuel sales.
Russia cuts September seaborne diesel exports to meet domestic shortage
Russia has reduced its seaborne diesel and gasoil exports by almost 30% in September due to local refineries undergoing maintenance and a fuel shortage in the domestic market. This has led to rising prices and the government is considering imposing an export duty of $250 per ton on oil products from October 1 until June 2024.
Indian gas utilities sector returning to normalcy: ICRA
The Indian gas utilities sector is returning to normalcy after facing volatility in prices and availability of LNG. Softening LNG prices, increased domestic gas supplies, and regulatory support from the government are driving gas offtake in the domestic market. The domestic production is expected to grow, reducing reliance on LNG.
