Coal 2023: analysis and forecast to 2026
Latest IEA market report sees lower demand to 2026, based on current policies, but stronger actions are needed to drive a steeper decline towards meeting international climate goals. After reaching an
Fuel Pricing
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New Energy for Hydrocarbon Policy
A new fiscal regime for oil and gas output is broadly welcome with attendant institutional revamp There seems much policy reform in the pipeline in the oil and gas sector. The report of the ‘Committee on the production sharing contracts mechanism in petroleum industry’ calls for policy overhaul to incentivise exploration and production (E&P) of hydrocarbons. The panel, headed by Dr C Rangarajan, has recommended a revamped policy regime for new contracts in the upstream oil and gas industry based on upfront revenue share for government, rather than cost recovery for licensee operators being the primary focus as at present.
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CNG, PNG to cost more as Adani, GSPC Gas hike prices
Two major players announce price rise in the range of 10-34% across segments Gujarat government-owned gas distribution player, GSPC Gas Company and the Adani Group's gas distribution arm, Adani Gas have announced sharp increase in gas prices for the domestic, industrial and CNG consumers. The price hike was attributed to the costly imported LNG and non-supply of cheaper domestic gas to Gujarat by Centre.
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12-cylinder carrot to lure support for fuel price hike
In a bid to neutralise political opposition to planned fuel price hikes, the government is considering a two-step process: First, allow up to 12 subsidised domestic gas cylinders per year from the currently proposed nine and later, raise prices of LPG and diesel in a phased manner. Sources told FE that a compromise is being worked out after some Cabinet ministers termed the six-cylinder cap and the proposed fuel price hike as “politically suicidal”. A section of the ruling coalition too feels these steps could cost the UPA at the hustings.
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150 BPL families get LPG cylinders, gas stoves
Delhi set to become first kerosene-free state With the distribution of filled liquefied petroleum gas (LPG) cylinders in the Rajinder Nagar assembly constituency, the government has begun the process of making Delhi a kerosene-free state. The constituency is represented by the Transport Minister, Ramakant Goswami. A few years ago, the government had announced that it would distribute gas cylinders and stoves free of charge to the BPL cardholders to make the Capital kerosene-free.
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HC gives Centre a week to file reply on CNG prices
Ahmedabad: The Gujarat high court on Thursday directed the Centre to file an affidavit in a week’s time explaining why the court should not take punitive action against responsible persons for noncompliance of its order to supply CNG to Ahmedabad at a rate supplied to Mumbai and Delhi. On July 25 last year, the bench headed by Chief Justice Bhaskar Bhattacharya ordered for conversion of all public vehicles to CNG and asked the Centre to provide gas to the city at the price at which it was supplied to metro cities.
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Dual diesel price regime to hit state oil cos
New Delhi:The oil ministry’s proposal for a dual pricing regime for diesel — having a market price for bulk consumers and subsidized rate at pumps — would work to the disadvantage of state-run fuel retailers and spark diversion. The option is one of the suggestions made in the ministry’s response to recommendations for reducing deficit made by a finance ministry panel under former bureaucrat Vijay Kelkar.
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Partial diesel decontrol likely for bulk users
Faced with a hefty bill of close to R1 lakh crore this fiscal towards compensating oil marketing companies on selling diesel below cost and naysaying by the finance ministry, the petroleum ministry is set to ask the bulk consumers of the fuel to buy it at market rates. Currently, bulk consumers — power plants based on diesel, companies with captive power units, the railways and road transport corporations — buy the fuel at subsidised rates but at slightly lower rates than the retail consumer, thanks to a waiver of dealers’ commission and discounts offered by the oil companies which compete to get the tenders.
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Oilmin seeks hike of R4.50/L for diesel and R100 for LPG
The oil ministry has proposed a hike of R3-4.50 per litre in diesel price and R100 per cylinder in LPG rates, along with raising the number of subsidised cooking gas cylinders for households to nine a year from the current cap of six. The ministry has moved a note for consideration of the Cabinet, proposing options for meeting a record R160,000-crore deficit arising from selling auto and cooking fuels below their cost.
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Petroleum Ministry presses for fuel price hike to wipe out subsidy
Pressing ahead with the Kelkar Committee recommendations and grappling with massive under-recoveries, the Petroleum and Natural Gas Ministry has initiated a Cabinet note to raise the cap on subsidised LPG supply from six to nine cylinders a household a year, and increase diesel, LPG and kerosene prices in phases. As the Finance Ministry refused to share the subsidy burden of the oil marketing companies, the Petroleum Ministry is pressing for a phased price increase to cut the subsidy down to the bare minimum during the next two-four years.
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Don’t invest in Haldia Petro, ministry tells Indian Oil
The Union petroleum ministry has issued directives to Indian Oil Corporation (IOC) to not consider any investment in Haldia Petrochemicals (HPL) since the oil major has no room to leverage its finances with government subsidy required to post profits. IOC posted a R22,451 crore net loss in the first quarter of FY 13, though in the second quarter it came round the corner posting a R9,611-crore net profit. A petroleum ministry official told FE that IOC’s 9.6% holding in HPL already has a negative impact on its balance sheet since HPL shares are R(-)5 per share at present.