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Hindustan Times
8 hours ago
- Business
- Hindustan Times
India seen cushioned on oil spike, for now
Rising international oil prices may not immediately result in an increase in petrol, diesel and cooking gas prices in India, and Indian consumers are unlikely to face supply disruptions even if Iran closes the Strait of Hormuz, government officials familiar with the matter claimed. India is less dependent on the Gulf region for crude oil. (HT Photo) India relies on diversified energy sourcing and could restrict exports of any refined petroleum product in case of domestic shortage, they added, asking not to be named. The price the Indian basket soared by about 19% to $77.34 a barrel (of crude oil) on Friday as compared to little over $65 per barrel before the Israel-Iran war -- and the US bombing of Iran is likely to push prices further north -- but India's average crude oil price in the month of June (as on June 23) was $69.78 a barrel, which is still manageable, the officials said. State-owned oil marketing companies (OMCs) did make some additional profits when average crude oil prices were low, so they may absorb increases in international crude rates up to $80, they added. Also Read | What is Strait of Hormuz that Iran may shut and how it will affect India India is less dependent on the Gulf region for crude oil, the officials said. India now sources large quantities of crude from about 30 countries, including Russia, the US, South America and African nations. To be sure, India still sources around 40% of the crude it imports from West Asia, and analysts say a closure of the strait could affect 40% of crude and 50-60% of LNG imports. India is the world's third largest crude oil consumer after the US and China. It imported 232.7 million tonnes of crude worth $157.5 billion in 2024-25 . The country imports over 88% of crude oil it processes and also exports various refined products. Being a refinery hub in the South Asian region, India also exports surplus petroleum products such as aviation turbine fuel, petrol and diesel. In FY25, it exported 61 million tonnes of petroleum products worth $57.3 billion. Also Read | Oil soars as Trump's attack on Iran ramps up risks to supplies 'If Iran closes the Strait of Hormuz, shortages could be met in the short-term through exports restriction,' one of the officials said. A longer closure could cause problems, though. On cooking gas (also known as domestic liquefied petroleum gas), a second official said state owned firms such as Oil and Natural Gas Corp (ONGC), Gail India, Indian Oil Corporation and Bharat Petroleum Corporation are producing enough to meet the domestic requirements. The second official acknowledged that India's LNG imports ' could be affected as about 60% of India's natural gas imports pass through Hormuz', but added that Iran was unlikely to close the strait because it would hit Iran's friends such as 'China, the most'. 'The impact would be largely on South Asia and Pacific regions such as China, Japan, India, Korea, Taiwan, Philippines and Singapore, who are major buyers of oil and LNG from West Asia' said SC Sharma, former officer on special duty at the erstwhile Planning Commission. He added that India also has about 80 days of oil and oil products stored in different types of storages to sustain short-term supply blips.
Gulf Insider
05-05-2025
- Business
- Gulf Insider
Saudi Push Into Indian Refining Is Stalling Over Crude Supply
Saudi Arabia's progress in securing investment in two oil refineries in India is being held back by a lack of consensus around crude supply, according to people familiar with the matter. The nations agreed last month to collaborate on the two plants, as the largest oil exporter seeks to tap a massive market that will help drive global demand growth. But the early-stage discussions have stalled as Saudi negotiators push to supply half of the crude needed by the processors at official selling prices that are often above market rates, the people said, declining to be named due to the sensitivity of the talks. India wants Saudi's share of supply to be closer to its desired 20% stake in the ventures — and at a discount to so-called OSPs, the people said. India's oil ministry and the local project partners — Bharat Petroleum Corp. Ltd. and Oil and Natural Gas Corp. — didn't reply to emails seeking comment. Saudi Aramco did not immediately respond to a request for comment. State-owned Saudi Aramco is looking to help set up multibillion-dollar refineries in high-growth nations including China and India, as well as in Southeast Asia, to secure demand for its crude and ensure stability during market volatility, according to its latest annual report. Its weighted average share in overseas processors in 2024 was 35% but it supplied an average 53% of the crude they used, according to the document. The exporter is also looking to claw back market share. Saudi Arabia, the de-facto leader of the OPEC+ producer group, was once India's largest oil supplier but has seen its position in the market decline as discounted imports from Russia increase. A failure to agree on the projects would also be a diplomatic blow. Saudi Crown Prince Mohammed bin Salman — who announced the ventures at a meeting with India's Prime Minister Narendra Modi in Jeddah — had in 2019 pledged $100 billion of investments in India, but just a 10th of that has materialized. A proposed $60 billion refinery planned by Aramco, Abu Dhabi National Oil Co. and India's state firms, didn't materialize due to land acquisition issues. Plans to buy a 20% stake in billionaire Mukesh Ambani's Reliance Industries also fell through. That has increased pressure on both sides to finalize the investments in the new processors — BPCL's proposed refinery and petrochemical complex on the east coast and ONGC's on the west coast in Gujarat, the people said. However, without an agreement on discounted supplies, the Indian refiners see little reason for the Saudis to take a stake, especially as they can easily raise debt from local banks, they said. Saudi Arabia is also proposing to take a stake of as much as 15% in Indian Oil Corp.'s Panipat refinery, one of the people said, a plan which the Indian government plans to study.
Time of India
05-05-2025
- Business
- Time of India
Saudi push into Indian refining is stalling over crude supply
Saudi Arabia's progress in securing investment in two oil refineries in India is being held back by a lack of consensus around crude supply, according to people familiar with the matter. The nations agreed last month to collaborate on the two plants, as the largest oil exporter seeks to tap a massive market that will help drive global demand growth. But the early-stage discussions have stalled as Saudi negotiators push to supply half of the crude needed by the processors at official selling prices that are often above market rates, the people said, declining to be named due to the sensitivity of the talks. India wants Saudi's share of supply to be closer to its desired 20% stake in the ventures — and at a discount to so-called OSPs, the people said. India's oil ministry and the local project partners — Bharat Petroleum Corp. Ltd. and Oil and Natural Gas Corp . — didn't reply to emails seeking comment. Saudi Aramco did not immediately respond to a request for comment. State-owned Saudi Aramco is looking to help set up multibillion-dollar refineries in high-growth nations including China and India, as well as in Southeast Asia, to secure demand for its crude and ensure stability during market volatility, according to its latest annual report. Its weighted average share in overseas processors in 2024 was 35% but it supplied an average 53% of the crude they used, according to the document. The exporter is also looking to claw back market share. Saudi Arabia, the de-facto leader of the OPEC+ producer group, was once India's largest oil supplier but has seen its position in the market decline as discounted imports from Russia increase. A failure to agree on the projects would also be a diplomatic blow. Saudi Crown Prince Mohammed bin Salman — who announced the ventures at a meeting with India's Prime Minister Narendra Modi in Jeddah — had in 2019 pledged $100 billion of investments in India, but just a 10th of that has materialized. A proposed $60 billion refinery planned by Aramco, Abu Dhabi National Oil Co. and India's state firms, didn't materialize due to land acquisition issues. Plans to buy a 20% stake in billionaire Mukesh Ambani's Reliance Industries also fell through. That has increased pressure on both sides to finalize the investments in the new processors — BPCL's proposed refinery and petrochemical complex on the east coast and ONGC's on the west coast in Gujarat, the people said. However, without an agreement on discounted supplies, the Indian refiners see little reason for the Saudis to take a stake, especially as they can easily raise debt from local banks, they said. Saudi Arabia is also proposing to take a stake of as much as 15% in Indian Oil Corp .'s Panipat refinery, one of the people said, a plan which the Indian government plans to study.
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Business Standard
05-05-2025
- Business
- Business Standard
Saudi Arabia's push into Indian refineries stalled over crude oil supply
The nations agreed last month to collaborate on the two plants, as the largest oil exporter seeks to tap a massive market that will help drive global demand growth Bloomberg By Rakesh Sharma, Sudhi Ranjan Sen and Ruchi Bhatia Saudi Arabia's progress in securing investment in two oil refineries in India is being held back by a lack of consensus around crude supply, according to people familiar with the matter. The nations agreed last month to collaborate on the two plants, as the largest oil exporter seeks to tap a massive market that will help drive global demand growth. But the early-stage discussions have stalled as Saudi negotiators push to supply half of the crude needed by the processors at official selling prices that are often above market rates, the people said, declining to be named due to the sensitivity of the talks. India wants Saudi's share of supply to be closer to its desired 20 per cent stake in the ventures — and at a discount to so-called OSPs, the people said. India's oil ministry and the local project partners — Bharat Petroleum Corp. Ltd. and Oil and Natural Gas Corp. — didn't reply to emails seeking comment. Saudi Aramco did not immediately respond to a request for comment. State-owned Saudi Aramco is looking to help set up multibillion-dollar refineries in high-growth nations including China and India, as well as in Southeast Asia, to secure demand for its crude and ensure stability during market volatility, according to its latest annual report. Its weighted average share in overseas processors in 2024 was 35 per cent but it supplied an average 53 per cent of the crude they used, according to the document. The exporter is also looking to claw back market share. Saudi Arabia, the de-facto leader of the OPEC+ producer group, was once India's largest oil supplier but has seen its position in the market decline as discounted imports from Russia increase. A failure to agree on the projects would also be a diplomatic blow. Saudi Crown Prince Mohammed bin Salman — who announced the ventures at a meeting with India's Prime Minister Narendra Modi in Jeddah — had in 2019 pledged $100 billion of investments in India, but just a 10th of that has materialized. A proposed $60 billion refinery planned by Aramco, Abu Dhabi National Oil Co. and India's state firms, didn't materialise due to land acquisition issues. Plans to buy a 20 per cent stake in billionaire Mukesh Ambani's Reliance Industries also fell through. That has increased pressure on both sides to finalise the investments in the new processors — BPCL's proposed refinery and petrochemical complex on the east coast and ONGC's on the west coast in Gujarat, the people said. However, without an agreement on discounted supplies, the Indian refiners see little reason for the Saudis to take a stake, especially as they can easily raise debt from local banks, they said. Saudi Arabia is also proposing to take a stake of as much as 15 per cent in Indian Oil Corp.'s Panipat refinery, one of the people said, a plan which the Indian government plans to study.
Yahoo
31-03-2025
- Business
- Yahoo
India raises gas prices from April
NEW DELHI (Reuters) - India has raised the price of its locally produced gas from oil fields by nearly 4% to $6.75 per million metric British thermal units (mmBtu) for April, compared with $6.50/mmBtu for the previous month, a government website showed on Monday. It is the first revision in two years in the price of gas produced from old fields. In 2023, India fixed a cap of $6.50 per mmBtu for two years with a provision of an annual upward revision of 25 cents from the third year. India has also set the ceiling price for gas to be produced from difficult fields at $10.04 per mmBtu for April-September, compared to $10.16 per mmBtu in the previous six months, the website of the Petroleum Planning and Analysis Cell of the oil ministry showed. The prices will be applicable on a gross heat value basis. Higher prices of gas produced from oil fields will lead to higher earnings for Oil and Natural Gas Corp and Oil India while raising the prices for industrial buyers and companies in the fertiliser and city gas distribution sectors. Sign in to access your portfolio
