Indian Oil Corporation’s restructuring of its pipeline division and outsourcing plans for aviation fuel stations, depots, and terminals are facing strong internal opposition. The Indian Oil Officers Association has cautioned the petroleum minister about potential risks to operational integrity and strategic interests. Concerns include compromised safety standards and misaligned priorities during emergencies due to privatization.
Indian ports have received two large crude carriers loaded with Iranian oil. This marks the first purchase from Iran in seven years, enabled by a temporary US waiver. The waiver expires soon. Indian Oil Corp and Reliance Industries are among the refiners taking advantage of this opportunity.
Iran faces a critical shortage of oil storage. Unused capacity is dwindling, potentially leading to significant production cuts. A US-led blockade is severely impacting exports through the Strait of Hormuz. This situation is contributing to a global oil price rally. Neighboring countries are also cutting output. The full revenue impact for Iran may be delayed.
Indian oil companies face substantial losses on petrol and diesel sales. Elevated crude oil prices are squeezing marketing margins. Cooking gas LPG is projected to incur an Rs 80,000 crore under-recovery this fiscal. Fertiliser subsidies are also set to rise significantly. These pressures impact profitability across various sectors, with relief contingent on easing global tensions…
India’s state-run oil firms faced massive losses of an estimated Rs 30,000 crore. They kept fuel and LPG prices stable despite a global energy disruption. This ensured uninterrupted supplies for consumers. The government’s excise duty cuts helped mitigate further losses. India’s approach differed from other nations where fuel prices surged.
Fuel demand trends shifted in November. Petrol sales growth decelerated compared to earlier months. Conversely, diesel consumption saw a significant acceleration. Aviation fuel demand also picked up pace. Liquefied petroleum gas, essential for cooking, continued its steady growth. These changes mark a reversal of the patterns observed throughout the year.
The Strait of Hormuz closure is impacting Asia’s chemical industry, pushing India to emulate China’s coal-to-chemicals model for energy and food security. Despite domestic coal challenges and technological gaps, India is investing heavily to boost its coal-based chemical production, potentially extending the fossil fuel’s demand.
India imports about half of its natural gas requirement, which is used to generate electricity, make fertiliser, convert into CNG to run automobiles, piped to household kitchens for cooking and used as feedstock in a variety of industries. This gas is imported in its liquid form, called LNG, in ships from countries like Qatar and…
Moody’s Ratings has affirmed Baa3 credit ratings for Adani Energy Solutions entities. This includes Adani Transmission Step-One Ltd, Adani Transmission Restricted Group 1, and Adani Electricity Mumbai Ltd. The rating agency maintains a negative outlook. This is due to governance risks linked to legal proceedings involving Adani Group executives.
India will postpone maintenance on approximately 10,000 megawatts of coal-fired power generation capacity until July. This decision aims to ensure sufficient power supply during the country’s peak summer demand. Additionally, around 8,000 megawatts of gas-fired generation capacity is experiencing disruptions. These issues stem from increased fuel costs influenced by the ongoing Iran war.