With many refineries in North Asia scheduled to resume operation following a shutdown for maintenance, premium on naptha has declined in the international market. Industry sources informed that June premiums were weaker than May premiums owing to expectations rise in supply of naptha as refineries resume operation. As an indication of fall in premium, Oil & Natural Gas Corp (ONGC) received a price of about $25 a tonne to Middle East quotes on a free-on-board (FOB) basis when it rece
Tag: price
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OMCs await govt decision on compensation formula
State-run oil marketing companies (OMCs) and upstream firms like ONGC are awaiting the final decision from the government on adopting the formula for compensating the OMCs for under-recoveries. While union finance ministry wants the adoption of export-parity pricing model to compensate for under-recoveries, petroleum ministry opposes the proposal as it woul
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Gas-based power plants need 72 mscmd gas
Media reports quoted a top source from the union power ministry as saying that natural gas-based power plants in the country need 72 mscmd of gas to operate at 75 per cent plant load factor. However, at present they get only 27 mscmd gas, which enable them to operate at only 29 per cent plant load factor, reports suggest
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Ministry gets request from OIL for gas revision
In order to meet the increasing cost of production and also to enable the proposed capital investment of over Rs 19,000 crore in the 12th Five Year Plan period (2012-17), Oil India (OIL) asked the union oil ministry to raise natural gas price. In a letter to the union oil ministry, the firm said its cost of production of natural gas from the nominated fields was increasing on sustained
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OMCs to benefit from diesel price hike: Moody’s
Moody's Investors Service pointed out that the recent Re 1 a litre hike in diesel price would reduce under-recoveries incurred by state-run oil marketing companies (OMCs) on sale of fuel at below-market rates. With this price hike, diesel prices rose a cumulative Rs 2.25 per litre since January, which translates into an Rs 18,000 crore decline in under-recoveries, the rese
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GAIL studies impact of tariff order
GAIL India is studying the impact of the recent tariff order by the Petroleum and Natural Gas Regulatory Board (PNGRB) on its financial position. Some reports indicate that the May 10 order of PNGRB may cause Rs 500 crore loss for the company. In its order, the downstream regulator retrospectively reduced the tariff charged by GAIL for its Krishna Goda
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Ore output in Odisha may rise in FY14
A news agency reported that Odisha may produce around 65 million tonne (mn t) of iron ore in 2013-14, which is about 5 percent more than the 62 mn t produced in the previous financial year. It may be noted that Odisha is the biggest producer of iron ore in the country. The state government expect higher ore production after it allowed miners in the two high
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Govt to consider views of fertiliser, power ministry on gas pricing
Union Petroleum Minister Veerappa Moily is quoted as saying that the government would arrive at a consensus on the pricing of natural gas after considering the reservations of the power and fertiliser ministries. Moily has reportedly said his ministry has not yet approved $8-$8.5 per mmbtu as the new uniform gas price, as suggested by the committee headed by
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House panel suggests JV firm for oil import
The Parliamentary standing committee on petroleum and natural gas suggested the formation of a joint venture firm by all the state-run refiners who import crude oil from abroad. The proposed joint venture firm, that would be promoted by all the interested state-run refiners, must be entrusted with the work of importing of crude oil requi
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NMDC decides ore price based on local mkt condition
According to the pricing policy being followed by NMDC, the prices of various products of the mines of NMDC are kept in sync with the prevailing domestic iron ore prices in other sectors. NMDC is fixing its domestic prices keeping in view prevailing iron ore prices in other sectors and demand supply scenario for its iron ore. Union Minister of Steel, Beni