29 June 2010;business-standard.com:New Delhi: State-run Oil and Natural Gas Corp is planning an investment of Rs 4,580 crore ($986 million) to buy 14 oil and gas rigs, a newspaper reported on Tuesday, citing an unnamed company official. The company wants to acquire 10 onshore rigs for Rs 900 crore from state-owned Bharat Heavy Electricals Ltd (BHEL) and float tenders for four offshore rigs that may require an investment of Rs 3,680, the report said. "For onshore rigs we will go with BHEL. We have got quotations from them," an ONGC official was quoted as saying. "For offshore jackup rigs, once we crystalize the design, we will go for tendering."
Diesel deregulation will favour petrol: car makers
28 June 2010;hindustantimes.com:Sumant Banerji:The government’s decision last week to partially deregulate the price of diesel is likely to fuel demand for petrol cars, as the difference between the prices of the two fuels is likely to come down further. The introduction of new-age diesel technology and the lower cost of running passenger cars, especially smaller cars such as the Tata Indica and Maruti Suzuki Swift, has seen demand for diesel cars go up significantly. Almost all the cars that have diesel and petrol variants sell more diesel units. “The pricing of diesel always gave it an advantage over petrol but now the difference is narrowing,” said GK Acharya, deputy general manager, Indian Oil Limited. “Earlier diesel consumption was five times that of petrol, but now it is down to four. In Europe, it is 2-2.5 times that of gasoline.” In 2002, the price of petrol was around Rs 29 per litre while diesel cost Rs 18, a difference of 38 per cent. Today, petrol costs Rs 51.4 per litre while diesel is at Rs 40.1, a difference of 22 per cent. Deregulation of diesel will increase its price to around Rs 45 per litre, cutting the price difference to just 12.5 per cent. Car manufacturers said the attractiveness of diesel is getting eroded, “There is no clear winner between the two fuels, but it does appear that petrol has a slight edge now,” said Shashank Srivastava, chief general manager (marketing), Maruti Suzuki India Ltd.
Petrol Price Deregulation Good or Bad ? Please comment !
Finally after much Drama, government decided to deregulate the petrol prices from its control. Is it good for common people ? What is ahead ? will private companies start a price war ? will the prices go down now ? Please Comment ! Thanks !
28 June 2010;deccanherald.com:India's crude oil production rose for the sixth consecutive month in May, expanding by 5.8 per cent on the back of output from fields run by Cairn India and Reliance Industries. Asia's third-largest energy consumer produced 2.94 million tonnes of crude oil as against 2.78 million tonnes a year ago, according to latest data released by the Oil Ministry here. Private sector firms like Cairn and Reliance produced 63.7 per cent more crude oil, at 691,300 tonnes, in May. Cairn produced about 60,000 barrels per day (bpd) from its Rajasthan fields and Reliance 30,000 bpd from its KG basin oilfields. State-owned Oil and Natural Gas Corp (ONGC) produced 1.9 per cent less crude oil in May, at 2.024 million tonnes, primarily because the output of its prime Mumbai High fields had fallen by 2 per cent to 1.4 million tonnes. Oil India Ltd reported a 23.1 per cent drop in output to 229,700 tonnes. Reliance also helped the country's natural gas production rise for the 15th straight month. The output climbed by 34.4 per cent to 4.58 billion cubic metres, mainly due to output amounting to about 60 million standard cubic metres per day from its KG-D6 fields. ONGC's gas output was 0.7 per cent lower, at 1.92 bcm. Refineries, on the other hand, turned 7.7 per cent more crude oil into products in May. Refinery production increased to 13.75 million tonnes from 12.76 million tonnes a year ago. Reliance's Jamnagar refinery turned 5.5 per cent more crude oil into products, at 3.12 million tonnes, while Essar Oil's Vadinar unit achieved a 22.9 per cent increase in production, at 1.25 million tonnes. Processing by the state-owned Indian Oil Corp (IOC), the nation's largest refiner, increased by 11.9 per cent to 4.47 million tonnes.
28 June 2010;deccanherald.com:London:BP Plc’s response to devastating Mexican Gulf oil spill is growing more expensive by the day, with the British energy major revising its costs upward to a whopping US$2.65 billion. The embattled entity has revised the figure upwards for the third time in less than ten days. “The cost of response to date amounts to approximately US$2.65 billion, including the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid and federal costs,” BP said. Last Friday, BP had projected oil spill-related expenses at US$2.35 billion, higher than its earlier estimate of US$2 billion. Claims against the company related to the spill, too are rising everyday.
28 June 2010;timesofindia.indiatimes.com:MUMBAI: Justifying the recent hike in prices of petrol and diesel, finance minister Pranab Mukherjee said on Monday that it was essential to meet the under-recoveries of the oil marketing companies. Interacting with media persons, Mukherjee said that the enhancement of prices of essential commodities is always unpleasant, "but the bullet had to be bitten". He said though the prices of petrol would be "market-determined", a gap of 1.49 percent still exists on prices of diesel. Even after the latest hike, the subsidy on a cooking gas cylinder would be Rs.227 and Rs. 14.80 on kerosene. "There will be some inflationary pressure and according to the chief economic advisor, the direct effect on inflation would be to the extent of 0.9 percent," Mukherjee said. He admitted that the price hike would also have some cascading effect as the cost of transport would go up, which in turn, would affect prices of other products in the economy. "However, the overall inflationary pressure would moderate by July, particularly the food inflation and inflation for primary articles, and inflation would reduce to a moderate level by the year-end," Mukherjee said. However, he declined to comment on the possible hike in interest rates in view of the inflationary build-up in the economy and said that the Reserve Bank of India would decide in its monetary policy July-end, based on the economic data.
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