Category: Gas and Oil

January 1, 2016

ATF price was slashed by 10 per cent, but rates of non-subsidised cooking gas, LPG were hiked by Rs 49.5 per cylinder on global trends. Simultaneously, the oil firms raised prices of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs 49.5 per 14.2-kg bottle. Non-subsidised cooking gas (LPG) now costs Rs 657.50 in Delhi. This is the third hike in rates in as many months. Non-subsidised LPG price was last hiked by Rs 61.50 on December 1. Prior to that rates were increased by Rs 27.5 per cylinder on November 1. Also, the price of non-subsidised kerosene, available outside the ration shop, has been cut to Rs 43,194.82 per kl (Rs 43.19 a litre) from Rs 44,246.47 per kl. This is the third reduction in rate in one month. Prior to this, price of non-subsidised or non-PDS kerosene were cut by about 25 paise on December 1 and 50 paise on December 16. Subsidised kerosene currently costs Rs 14.96 a litre in Delhi.

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December 31, 2015

According to a statement by Indian Oil Corporation, petrol and diesel prices have been slashed by 63 paise a litre and Rs 1.06 a litre respectively.. In Delhi, petrol will cost Rs 59.35 a litre and diesel Rs 45.03 a litre from 1st January 2016, with prices varying marginally in other places due to local levies. IOC ,following its fortnightly review to align local prices with international rates and adjust for foreign exchanges, said “The current level of international product prices of petrol and diesel and the exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision”.In the previous review, oil companies had cut prices of petrol by 50 paise a litre and diesel by 46 paise a litre. The company said it will continue to monitor movement of prices in the international oil market and the exchange rate closely and the market trends will reflect in future price changes.

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December 31, 2015

( ) Petronet LNG has reworked its long-term gas deal with Qatar’s RasGas that will halve the import price and waive the penalty of Rs 12,000 crore for lifting lower than the contracted amount, a sign of the changing global commodity market and the related shift of power to the gas consumers.
The biggest Indian gas importer, Petronet had been forced to buy one of the most expensive liquefied natural gas (LNG) in the world this year due to a 25-year contract that didn’t quickly reflect the global price crash. The spot LNG prices have fallen to $6.7 per unit but Petronet had to purchase LNG at $12-13 per unit under the contract. This price will fall to $6-7 per unit from January under a reworked pricing formula, oil minister Dharmendra Pradhan said, following the agreement between the two companies after negotiations that lasted several months and involved multiple interventions from Prime Minister Narendra Modi, Pradhan and the head of the state of Qatar.
The deal marks Prime Minister Narendra Modi’s biggest diplomatic win in the energy sector since coming to power last year. He has been trying to leverage India’s position as one of the world’s biggest energy consumers to strike better bargains for its companies. It also shows how tumbling oil prices and a global gas glut are compelling exporters to offer better deals to retain their share in

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December 31, 2015

Minister of State for Petroleum & Natural Gas Dharmendra Pradhan said that Compressed Natural Gas (CNG) in NCR will be sold at concessional rates during odd hours of the day to reduce the rush at CNG pumps. The cost will be Rs 1.5 per kg less during odd-hours – midnight to 5 am . The announcement that IGL will give discounts on CNG during odd-hours to consumers follows Qatar ‘s decision to lower gas price for India and waive off $1.5-billion penalty for lower offtake. With the new arrangement, India will be able to buy additional 1 million tonne per annum of LNG from Qatar at new pricing formula. This is the

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December 30, 2015

( ) According to Icra  report, oil companies are in for a windfall as under-recoveries are set to drop by a massive 58 per cent to Rs 30,000 crore in 2015-16 from Rs 72,300 crore in the previous fiscal  against  plummeting crude prices and increased penetration of direct cash transfers.
Under-recoveries of state-run oil marketers will fall by 58 per cent if the average Indian basket crude price remains at USD 51 a barrel and the rupee trades at 65 to the dollar.
The report stated that  under-recoveries of oil companies have  already come down 69 per cent in first half of the current fiscal to Rs 15,940 crore from Rs 51,110 crore a year ago following near halving in the average price of Indian basket crude during the period, coupled with direct cash transfer scheme.
During the first half of this fiscal, the Indian basket crude prices fell 47 per cent, while direct cash transfers rose for LPG and kerosene.
Diesel under-recoveries led to a whopping 69 per cent fall in under-recoveries to Rs 15,940 crore in the first half of this fiscal from Rs 51,110 crore. With the government banning those earning more than Rs 10 lakh per annum from LPG subsidy from next month, the under-recoveries is expected to fall further.
Under-recovery sharing of upstream players like ONGC and OIL too came down drastically to Rs 1,980 c

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December 30, 2015

Petroleum and Natural Gas Minister Dharmendra Pradhan directed oil marketing companies to add 40 lakh new LPG consumers in Odisha by 2019 while reviewing status of LPG infrastructure and LPG availability and coverage in the state last week. The marketing companies (OMCs) have provided about 7.5 lakh new LPG connections in the state in the current financial year. Pradhan directed officials to set up two new bottling plants in western part of Odisha to meet LPG requirement of consumers. He also reviewed the current status of various infrastructure projects related to other petroleum products being undertaken by the OMCs in the state. The meeting was attended by senior officials of the Ministry and all the three OMCs — IndianOil, HPCLand BPCL.

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December 29, 2015

( ) In a response to  the petition filed by Rajatavo Dasgupta, who holds 10,000 shares in Cairn India, alleging that Vedanta used a complex web of transactions to make sure that part of the money spent to take over Cairn India came from the acquired company itself, the Bombay High Court has issued notices to Vedanta, its unit Cairn India and their  directors.
The petition alleged that the promoters and directors were involved in multiple transactions that were staggered over time to camouflage them from shareholders and these transactions violated rules under the Companies Act, and has asked the court to cancel the approval to merge Cairn India with Vedanta.
The petition seeks cancellation and refund of the payments from Cairn India as well as cancellation of the approval to merge Cairn India with Vedanta.
 

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December 29, 2015

( ) Minister of petrol and natural gas, Dharmendra Pradhan said that India plans to set up its biggest oil refinery in Maharashtra and the government has mandated state-run oil marketing companies (OMC) to work on the project together
Maharashtra consumes about 18 million tonnes of petroleum products every year, which is expected to increase significantly in the coming years. The minister said that the “mega refinery” would cater to the needs of the state and the rest of India and also look at exporting value-added products.
While speaking at the commissioning of BPCL?? crude distillate unit in Mumai, Pradhan said  “We want to set up a petrochemical hub in the western coast that will serve the domestic market and also have an eye on the world market. We have asked the three OMCs to work on it together so that we can start building the project in  2017.”
Maharashtra Chief Minister Devendra Fadnavis said at the same event. “We are responsible for land acquisition and environment clearances, and we will make sure all that is successfully done at a fast pace for this project.”
The three OMCs — Bharat Petroleum Corporation, Hindustan PetroleumBSE -1.20 % Corporation and Indian Oil Company — will work on the feasibility of the project. The modalities of investment in the project are yet to be decided.

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December 29, 2015

India has emphasised the need for early completion of all necessary procedures for its participation in the $5 billion Farzad-B gas field to Iran. External Affairs Minister Sushma Swaraj and Iranian Minister for Economic Affairs and Finance Ali Taiebnia who co-chaired the Joint Commission Meeting also reviewed the progress in trade and economic cooperation and a number of related matters, and discussed the possibilities in cooperation in Railways among other areas. The Iranian side suggested participation of India’s public and private sectors in development of Chabahar Port and Chabahar Free Trade Zone (FTZ) and in setting up an industrial units in the FTZ. Swaraj said Chabahar port will facilitate linking Afghanistan and Central Asia with India which will result in enhanced trade and commerce. Road Transport and Highways Minister Nitin Gadkari had visited Tehran in May, and both the nations had inked a pact to develop the Chabahar port.

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December 28, 2015

( ) The government has further relaxed rules for selling natural gas produced from small and isolated fields by waiving off time stipulation for fields located in the North East India.
The oil ministry had in July 2013 allowed pricing freedom for gas produced from small, isolated fields and given marketing freedom by imposing no obligation of seeking customers only from the fertiliser and power sectors. The policy, however, stipulated that only those customers who can take supply within 90-days be sold the gas.
The National Oil Companies (NOCs) have brought to the notice of the Ministry that customers of North East Region are facing various difficulties in utilising the gas within 90 days and have been requesting for longer lead time for monetisation of gas from small and isolated fields.
The Government has decided to increase the period of 90 days for off-take of gas from the date or readiness indicated by the NOCs to one year in respect of small and isolated fields located in the North East Region considering the difficulties of North East customers.
The policy allows producers from such fields to sell gas at market rates by inviting competitive bids from prospective consumers. Companies will fix a minimum price for their gas, which would be the prevailing government-determined rate, and ask interested buyers to offer more through b

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