Petrol | Diesel | Home LPG prices Up - Economic Updates

The government hiked petrol and diesel prices by Rs 5 and Rs 3 a litre respectively and that of LPG by Rs 50 a cylinder, while sparing poor man's fuel kerosene from any increase. The hike will be effective from midnight. The price of petrol, currently Rs 45.5 a litre in Delhi, will now cost Rs 50.5 or 11 per cent more, while diesel, which retails at Rs 31.5, will now cost 34.5 or 9.5 per cent more.

The Cabinet also reduced the customs duty on crude oil from 5 per cent to nil, and on petroleum and diesel from 7.5 per cent to 2.5 per cent. The customs duty on other petroleum products has been reduced from 10 per cent to 5 per cent. Inflation following the fuel price hike may rise by 0.5-0.6%.

Customs duty on other petroleum products like ATF and Naphtha has been cut from 10 per cent to 5 per cent.

The Union Cabinet chaired by Prime Minister Manmohan Singh took a slew of measures to offset the surging global oil prices that had put the national oil companies under acute pressure. The increase in prices would be effective from midnight, Petroleum Minister Murli Deora said.

The price hike would help oil companies to earn Rs 21,123 crore more.

As part of measures, the government decided to take a burden of Rs 94,601 crore for which it will issue oil bonds to state-run BPCL, HPCL and IOC which were reporting a daily loss of over Rs 720 crore.

also read : Impact of increase in fuel prices on inflation

In addition, the oil producing PSUs like ONGC would shell out Rs 60,000 crore through discounts to state-owned oil refiners and marketing companies.

Despite all the measures, there would still be a gap of Rs 29,000 crore, Revenue Secretary P V Bhide told reporters briefing about the decisions taken at the Cabinet.

When asked whether states will also be told to cap sales tax on petrol and diesel, the Revenue Secretary said there is no move from the Finance Ministry side on this issue.

However, sources said the Prime Minister's address to the nation later in the day may carry appeal to states in this respect.

With the hikes, India joins other Asian nations like Indonesia and Malaysia that are raising regulated domestic fuel prices as they find they can no longer afford to shield their consumers from the full effect of record global prices.

Petrol and diesel prices were last raised in February when the Indian basket of crude oil was at 67 dollars per barrel. Today it is at 124 dollars per barrel.

State-run Indian Oil, Bharat Petroleum and Hindustan Petroleum were together projected to lose Rs 2,46,600 crore on sale of petrol, diesel, domestic LPG and PDS kerosene in 2008-09 in absence of any price hike or duty cut.

Indian Business | Energy Sector latest Updates

Energy sector is very important sector of indian economy as it includes some of the heavy weights of indian industry like ONGC, Hindustan Petroleum, Indian Oil, Bharat Petroleum, Reliance group, Suzlon etc. Updates in energy sector have a lasting impact on indian economy. also update yourself with latest updates from Auto Sector Updates , Jobs Sector Updates , Energy Sector Updates , Media sector Updates , Entertainment Sector Updates , Telecom Sector Updates , Banking Sector Updates , Finance Sector Updates , Healthcare Sector Updates , Biotech Sector Updates , Pharmaceuticals Sector Updates - and get the comprehensive news about growth of indian economy.

Energy Sector consists of both power and Oil and Gas sector which includes many heavyweights of indian industry.

Latest Updates of Energy Sector:

April 2008 Energy Sector Updates :

Power Sector Updates:

• Chinese cos power into equipment market here - (21/4/2008)
• R-ADAG puts Rosa project on fast track - (20/4/2008)
• Haryana to strengthen power generation - (20/4/2008)
• ADB lends $113 mn to India wind power projects - (20/4/2008)
• L&T-MHI set to bag Rs 48,000-cr equipment order - (19/4/2008)
• CLP India to invest Rs 500 crore in Samana power project - (18/4/2008)
• Himachal to provide 2000 MW power to northern states: Dhumal - (18/4/2008)
• DVC poised to become 2nd largest power producer: Ramesh - (18/4/2008)
• Suzlon Energy bags orders for wind farm projects in China - (18/4/2008)
• Power ministry sends new name for NTPC top slot - (18/4/2008)
• GMR buys 5% in S African mine co - (18/4/2008)
• R-ADAG’s Rosa power plant ahead of schedule - (18/4/2008)
• GMR Energy acquires 5 pc stake in South African co - (17/4/2008)
• PGCIL seeks loan from World Bank, ADB - (17/4/2008)
• Power Grid plans Rs 8,040 crore FY-09 capex - (17/4/2008)
• KLG Systel to invest Rs 1.25 bn in power unit - (17/4/2008)
• BHEL may bag NTPC deals at set price - (17/4/2008)
• PFC to issue proposal for Tilaiya UMPP by May 30 - (16/4/2008)
• Bidding process on for UMPP in Jharkhand - (16/4/2008)
• Reliance Power to complete $2 bn ECB issue next month - (15/4/2008)
• BHEL-led consortium may sell Rs 55k-cr equipment to NTPC - (15/4/2008)
• No holds, bar: Reliance Power gets nod for $2-b ECB float - (15/4/2008)
• GVK Power may hive off energy arm - (14/4/2008)
• NHPC to form JV with J&K’s power utility - (14/4/2008)
• Don't ride Re power for overseas M&As: KPMG - (14/4/2008)
• Centre to increase Delhi's electricity quota by 10% - (13/4/2008)
• PM says no to bio-fuel production out of foodgrains - (13/4/2008)
• Haryana to add 5,000 MW of power generation capacity - (12/4/2008)
• TN taking steps to make state power surplus - (12/4/2008)
• Maharashtra sugar co-ops to produce 1,000MW surplus power - (11/4/2008)
• Haryana to spend Rs. 722 crore on strengthening electric transmission - (10/4/2008)
• NTPC to double coal imports in 2008/09:chief - (10/4/2008)
• Govt to slap pre-condition on foreign power equipment cos - (10/4/2008)
• Areva sees robust growth, plans to increase headcount - (10/4/2008)
• Areva T&D targets to double turnover; to invest Rs 700 crore - (9/4/2008)
• No interim relief to Reliance Power in UP land acquisition case - (9/4/2008)
• DHBVN to set up 59 sub-stations of 33 kv - (9/4/2008)
• IFC to lend Rs 1,800 crore to Tata's power project - (9/4/2008)
• Areva T&D India sees sales doubling by 2010 - (9/4/2008)
• World Bank approves $450 mn for Tata Mundra project - (9/4/2008)
• Give power to the people or hang head in shame: Jairam - (9/4/2008)
• Tata to set up 30 mw power unit in Haldia - (9/4/2008)
• Areva T&D bags Rs 418 crore order from Essar Constructions - (8/4/2008)
• RIL, Bhel consider JV for solar fab units - (8/4/2008)
• Four companies shortlisted for solar power projects in Punjab - (7/4/2008)
• APTEL rejects PGCIL plea on outages due to maintenance - (7/4/2008)
• NED Energy completes Gulf Powerbeat buy - (7/4/2008)
• India seeks energy cooperation with Kazakhstan - (7/4/2008)
• Domestic JV to power BHEL overseas buys - (7/4/2008)
• Lanco to invest Rs 18,000 cr for hydro power by 2015 - (7/4/2008)
• BHEL, NPCIL to float N-power equipment JV
• REL's plea on nod to PPA between Tata Power and BEST adjourned
• BHEL bags Rs 50,000 cr order to supply critical equipments
• BHEL, NPCL floats JV for nuclear power projects
• Indiabulls Power receives LoI for Chattisgarh power plant
• BHEL, NPCIL to sign JV agreement on Friday
• NLC achieves all time high performance in lignite production
• PTC India ventures into wind energy sector
• NTPC, UP govt enter JV to set up power plant
• Suzlon Energy's US arm bags 200 MW order
• ADB to give $600 million loan to Power Grid Corp
• PFC floats consultancy arm

Oil and Gas Sector Updates:

• Assam Company for more aggressive in Nelp VII, to raise $ 250-300mn - (21/4/2008)
• Refining margins may pump up RIL net by 35% - (21/4/2008)
• SMEs hit legal hurdles at various stages of growth - (21/4/2008)
• Hong Kong's CLP seeks more natural gas for its project - (20/4/2008)
• Saudi welcomes Indian cos to invest in its energy sector - (20/4/2008)
• India wants to participate in Saudi oil exploration - (20/4/2008)
• ONGC launches redevelopment work on Mumbai High South field - (19/4/2008)
• India Oil wants to market aviation fuel in Sri Lanka - (19/4/2008)
• Govt postpones bidding date for 57 oil & gas blocks - (18/4/2008)
• No need to reveal basis for cheap petrol through cards: CIC - (18/4/2008)
• Govt likely to postpone NELP-VII bid date to May 9 - (17/4/2008)
• IOC refinery to lose tax rebate benefits under proposed Clause - (17/4/2008)
• Asian Naphtha: ONGC offers 35,000 T for May - (17/4/2008)
• Oil at $115 record as dollar, US fuel stocks fall - (17/4/2008)
• Jamnagar refinery ahead of schedule - (17/4/2008)
• Reliance pipeline co files SLP against Andhra HC stay - (17/4/2008)
• OIL, IOC signs pact for oil exploration in Yemen - (16/4/2008)
• RPL to complete Jamnagar refinery project ahead of Dec - (16/4/2008)
• India imports 38% more crude oil in 11 months of FY'08 - (16/4/2008)
• Oil regulator asks IGL to halt setting up new stations - (16/4/2008)
• Venezuela approves law taxing foreign oil companies' windfall profits - (16/4/2008)
• Shell may offer $6.7 bn for 30% stake in RIL's D-6 block - (16/4/2008)
• Tax rejig for gas firms may hurt RIL - (16/4/2008)
• IGL expansion plans put on hold - (15/4/2008)
• Oil scarcity hits Mizoram as tanker drivers agitates - (15/4/2008)
• China Gas, Gail to tie-up for Coal Bed Methane blocks - (15/4/2008)
• GAIL, Arrow may join coal gas project: China Gas - (15/4/2008)
• Aban Offshore gets contract worth about $34 mn - (15/4/2008)
• IOC to import 36 million tonnes crude in '08/09 - (15/4/2008)
• India to take up IPI project with Pak - (15/4/2008)
• RIL sees Saudi dreams in Jizan oil refinery - (15/4/2008)
• OVL qualifies for oil and gas contracts in Iraq - (15/4/2008)
• OMEL to partner Total in Nigeria - (15/4/2008)
• Musharraf wants involvement of China in IPI project - (14/4/2008)
• OVL qualifies for oil, gas contracts in Iraq - (14/4/2008)
• India to meet Pak on Apr 25 on IPI gas pipeline - (14/4/2008)
• Petronet to buy 15 more spot LNG lots this fiscal - (14/4/2008)
• RIL in talks with BG, Chevron, Exxon for stake sale - (14/4/2008)
• IOC losing Rs 320 cr per day on fuel sales - (14/4/2008)
• IOC fiscal '08-09 capex seen at Rs 75 bn - (14/4/2008)
• IOC wants fair share of KG gas - (14/4/2008)
• IOC, Petronet in joint talks with Exxon for LNG supply - (14/4/2008)
• Nelp-VII may fade into the distance - (14/4/2008)
• Government asks oil producers to rethink policy - (13/4/2008)
• LPG cylinders containing half of the specified gas: Haroon Yusuf - (13/4/2008)
• Borrowings going up every month, says IOC chief - (12/4/2008)
• Indian Oil takes LNG to doorsteps of companies - (12/4/2008)
• Govt for lifting RIL gas sale stay - (12/4/2008)
• Govt a party to RIL-RNRL case - (11/4/2008)
• OVL may get to dig 2 more blocks in Venezuela - (11/4/2008)
• RIL to sell up to 10% in KG basin - (11/4/2008)
• NTPC in talks with oil firms for blocks bid - (10/4/2008)
• RIL in talks with foreign firms to sell 10% stake in KG Basin D6 block - (10/4/2008)
• Reliance in talks with foreign firms on D6 block - (10/4/2008)
• L&T eyes new Cairn oil pipeline contract - (9/4/2008)
• India keen to partner IPI gas project: Iran - (9/4/2008)
• ONGC Videsh, Petroleos to develop oil field in Venezuela - (9/4/2008)
• BG to sell LNG in India later this year - (9/4/2008)
• Venezuela to supply 150,000 bpd of oil to Reliance - (9/4/2008)
• India, Venezuela sign gas and oil agreement - (9/4/2008)
• Energy tribunal APTEL raps petroleum sector regulator on lack of guidelines - (8/4/2008)
• IOC seeks June sweet crude - (8/4/2008)
• RIL team strikes oil in Yemen - (8/4/2008)
• OVL to sign pact for 40% stake in Venezuelan field
• RIL to make rigs, invest $2.5 bn in gasification project
• Green Power International eyes Rs 400-cr turnover by 2011
• Deora to meet Pak, Iran officials on gas pipeline issue
• OVL to invest $450 mn in Venezuela
• India, Turkmenistan ink MoU on cooperation in oil sector
• US to provide technical assistance to HPCL
• Jindal Drilling buys 49 pc in Singapore firm
• Deora asks PM to cut customs duty on crude oil
• HPCL awards May-Oct term naphtha; plus $15/tonne
• Natural gas regulator lays down retail rules
• Reliance strikes new gas find in Krishna basin
• GAIL signs contract for PMT gas
• 'Pak committed to IPI project'
• Gujarat Gas signs supply pact with GAIL India
• Reliance says finds more gas off east coast
• GAIL India to buy 17.3 mmscmd PMT gas
• OVL makes $1 bn offer for three blocks in Angola
• Oil regulator lays down criteria for city gas projects
• GAIL signs contracts to takeover PMT gas marketing
• RPL eyes $500 million for Jamnagar SEZ refinery

March 2008 Energy Sector Updates:

Power Sector:

- PFC floats consultancy arm

- Inverters, generators demand in NCR to grow by 30 pc

- NTPC gets investment cap waiver

- Power in Punjab cheap by 3.5 pc from April 1

- NHPC commissions all 3 units of Teesta-V

- HPDC to launch awakening campaign

- Three hydel projects of Narmada Valley to be assigned to NHEDC

- Rel Energy arm wins Rs 1,200-cr Rel Power deal

- Power Grid signs for $1.2 bn loan from ADB, World Bank

- PGCIL aims Rs 5,400 crore turnover in FY09

- ONGC to fuel NEEPCO's power plant in Tripura

- Nigeria invites Indian firms to invest in power sector

- GEI Industrial bags Rs 30 cr contract from Essar

- Reliance Power to seek shareholders nod for bonus issue

- Jyoti Structures bags Rs 253 cr contracts from Uganda Electricity Transmission

- XL Telecom bags Rs l53.9 cr order to supply solar panels

- Morgan Stanley buys 3.85% in Sujana Towers

- Reliance Power speeds up Sasan plan

- With level playing field you can't compete with NTPC: CMD

- Delhi will have surplus power by 2010

- New power project coming up in Kashmir

- Tatas, RPower submit RFQ for Rajpura Thermal Power Project

- Larsen & Toubro to add thermal power equipment capacity

- World Bank approves $600 million loan to Power Grid Corporation of India

Oil & Gas Sector latest Updates:

- GAIL signs contracts to takeover PMT gas marketing

- RPL eyes $500 million for Jamnagar SEZ refinery

- IOC to focus on cleaner fuels in FY'09

- Rajasthan asset costs at $1.8 bn: Cairn India

- BPCL files DRHP for JV setting up refinery in MP

- Oil prices below $105 in Asian trade

- Reliance, BG refuse to sign Panna/Mukta gas deal

- Govt in a fix over Reliance's decision to close petrol pumps

- India likely to sign deal for Iran projects in April: ONGC

- Bhagawati Gases enters into MOU with Russian co

- Gail to transmit 81.5 mmscmd of gas a day in 2008-09

- Australian construction co bags $720 mn contract from ONGC

- Reliance Industries to shut its retail petrol pumps

- BP may enter into pact with Cals for refinery at Kolkata

- HC notice to Centre, IOC on shortage of cooking gas

- IOC bags Petrofed's 'Oil & Gas Corporate of the Year' award

- GAIL awarded Oil & Gas Pipeline Transportation Co of the year

- MRPL to shut 120,000 bpd crude unit in March