Latest news with #PrashantVasisht
Time of India
a day ago
- Business
- Time of India
DeepDive: India's green hydrogen journey starts at ₹397 per kg
Mumbai: India's recent green hydrogen price discovery through Indian Oil Corporation 's (IOCL) landmark tender has drawn mixed reactions from industry experts, reflecting both optimism about market potential and concerns over long-term competitiveness. The final price — ₹397/kg which is about $4.67/kg — discovered in the reverse auction process is being seen as a turning point for India's emerging green hydrogen sector. India's bid seen as globally competitive According to Ravi Shekhar , managing director of Eninrac Consulting, L&T's $4.67/kg green hydrogen bid is globally competitive, lower than EU imports and close to Middle East prices. 'India, led by players like L&T Energy Green Tech , is emerging as a competitive hub for green hydrogen production. With a price of $4.67/kg (₹397/kg), L&T's hydrogen offering is already aligned with global low-cost producers such as Saudi Arabia and the UAE, whose prices range between $4.50–$6.00/kg,' he said. He added that when factoring in logistics and import costs, Indian green hydrogen was cheaper than most EU imported hydrogen, which landed at ₹500/kg to ₹600/kg. This cost advantage is further reinforced by India's ultra-low solar tariffs of ₹2.5 to ₹3 per unit, among the lowest globally, which significantly reduce the cost of electrolysis-based hydrogen production. However, not all stakeholders are as optimistic. Green v/s grey Prashant Vasisht, senior vice-president and co-group head at ICRA, said that the prices discovered recently were in line with current trends and almost double the price of grey hydrogen derived from natural gas and therefore not very competitive. He said that economics and technology were yet to refine further for green hydrogen to become competitive. 'The price of green hydrogen is still some time away from attaining parity with grey hydrogen. Importantly, renewable electricity prices have to reduce substantially along with the capex of electrolysers among other things for green hydrogen to become competitive,' he said. In contrast, Nitin Yadav, head of hydrogen - India at Gentari, a clean energy company and a wholly-owned subsidiary of Petronas, called the price discovery a 'significant milestone' and said that their initial assessment suggested the prices were 'quite competitive'. 'The price discovery through the IOCL tender sends a strong signal to project developers that green hydrogen has a viable business case in India. The finalisation of this tender has instilled much-needed confidence in the market and laid the groundwork for scaling the hydrogen economy,' said Yadav. He added that the price discovery should lead to an increased demand for in-situ green hydrogen projects in India. Shekhar said that between 2024 and 2027, early industrial adopters, particularly in refineries and fertilizer production will drive initial demand for green hydrogen. 'This foundational uptake will be critical for de-risking investments, with $2–3 billion expected to flow into domestic electrolyzer manufacturing. By 2030, deeper decarbonization in hard-to-abate sectors like steel and transport will take shape, positioning India to capture 5-10% of the global electrolyzer market,' he added. Impact on offtake Regarding impact on offtake, ICRA's Vasisht added that as prices were significantly higher, offtake agreements would remain limited. 'If we aim for competitive pricing, the offtake must be firm and committed for the full 25-year term,' said Gentari's Yadav. He added that there should be more competition in this sector amongst project developers, which would help the green hydrogen ecosystem as well as the consumers. On offtake, Shekhar added that the Panipat project's 25-year offtake deal at ₹397/kg with IOCL would secure price certainty and enhance project bankability, setting a credible pricing benchmark for future bids. With scale-driven efficiencies and larger capacities, prices might fall below ₹350/kg, he added.
Time of India
a day ago
- Business
- Time of India
Refiners Reliance and Nayara tap India's drivers as export markets tighten
India's two major private-sector refiners, which have long prioritised exports, are turning to local sales, grabbing share in the country's fast-growing $150 billion fuel retail market as weaker global demand squeezes profit margins offshore. Reliance Industries and Nayara Energy are stepping up sales at home as fuel demand growth slows in developed markets and China, the world's second biggest oil consumer, with the transition to electric vehicles. The lower demand offshore combined with supply competition from new refiners, such as Dangote in Nigeria, and rising exports from China's underutilised processors have compressed global refining margins and have made the Indian market, where suppliers save on freight and taxes, more attractive. As a result, "private refiners are increasingly looking to supply to the domestic market, which is still growing at a healthy pace," said Prashant Vasisht, senior vice president at credit rating firm ICRA. The International Energy Agency expects India will become the largest source of global oil demand growth out to 2030, in contrast with China, where fuel demand may have already peaked. FGE analyst Dylan Sim said Indian gasoline consumption and diesel demand are on track to grow around 4 per cent and 2 per cent per year, respectively, over the next decade or so. "Couple that with the market volatility and uncertainties seen in recent years, it makes sense for these private companies to try and diversify their businesses," Sim said. Private Plants Hold Crude Advantage Offering discounts and growing their networks of big, modern stations featuring expansive retail offerings, private sector operators expanded their share of diesel sales to 11.5 per cent and gasoline sales to 9.2 per cent in the fiscal year that ended in March 2025, up from 5.2 per cent and 6.7 per cent respectively two years earlier, government data showed. Reliance , controlled by billionaire Mukesh Ambani, and Nayara have a key advantage that allows them to undercut the dominant state-owned refiners at the pump. They can run cheaper crudes through their plants than their bigger rivals, which have simpler, aging refineries. The two are the country's biggest buyers of discounted Russian crude , available since 2022. While the private refiners do not publish their refining margins, analysts at Jefferies expect Reliance's margin to hold around $2 a barrel stronger than the benchmark Singapore refining margin due to its blending of cheaper Russian and Canadian crudes. Reliance sells fuels through Jio-BP , its retailing tie-up with UK major BP which has 1,916 outlets in India. Its domestic sales volumes of diesel rose by 35 per cent and gasoline by 24 per cent in the quarter ended in March from a year ago, Reliance told analysts in May, without specifying volumes. Jio-BP plans to invest about 10 billion rupees ($117 million) annually to expand its local footprint in coming years as it sees a "long pathway" and growth in diesel demand in India through at least 2040, Vinod Tahiliani, chief financial officer at Reliance BP Mobility, told Reuters. Jio-BP offers discounts of 1 rupee ($0.01) per litre of diesel and petrol off the price charged by state-owned retailers at its service stations. Nayara, whose biggest shareholder is Russia's Rosneft, in April reintroduced discounts of 2-3 rupees per litre on gasoline and 1 rupee per litre on diesel. Selling through more than 6,500 fuel stations, it aims to add 400 this year, according to its website. Nayara did not reply to a request for comment. State players Indian Oil Corp , Hindustan Petroleum Corp and Bharat Petroleum Corp, which operate more than 90 per cent of India's roughly 97,000 filling stations, have not cut pump prices as they seek to recoup losses on sales of cooking gas at government-fixed below-market rates, company sources say. The three did not respond to Reuters' requests for comment. Service Stations Get Creative India, meanwhile, is expanding its highway network and auctioning large roadside plots for building fuel stations featuring a host of amenities for motorists. Sukhmal Jain, who recently retired as head of marketing at BPCL , said state refiners are rapidly building their networks, including bidding for highway-side plots, and looking to offer services such as eateries, recreational areas and gym facilities in order to compete and boost sales. The state retailers are also opening stores under a common brand name Apna Ghar, which means "Own House", with amenities such as dormitories, barbers, self-cooking facilities, laundry, and doctors on call for truckers who are on the road for more than 20-25 days a month, Jain said. India's oil ministry said recently that Apna Ghar operates at 350 locations with 4,431 beds. S.P. Singh, who manages a fleet of about 800 trucks and 150 trailers for New Delhi-based Chaudhary Transport, said his drivers are drawn to the amenities and cheaper fuel at private operators. "They have convenience stores and cafes. Their staff is more responsive to customers and their toilets are clean," he said.
The Sun
a day ago
- Business
- The Sun
Private refiners tap India's drivers as export markets tighten
NEW DELHI: India's two major private-sector refiners, which have long prioritised exports, are turning to local sales, grabbing share in the country's fast-growing $150 billion fuel retail market as weaker global demand squeezes profit margins offshore. Reliance Industries and Nayara Energy are stepping up sales at home as fuel demand growth slows in developed markets and China, the world's second biggest oil consumer, with the transition to electric vehicles. The lower demand offshore combined with supply competition from new refiners, such as Dangote in Nigeria, and rising exports from China's underutilised processors have compressed global refining margins and have made the Indian market, where suppliers save on freight and taxes, more attractive. As a result, 'private refiners are increasingly looking to supply to the domestic market, which is still growing at a healthy pace,' said Prashant Vasisht, senior vice president at credit rating firm ICRA. The International Energy Agency expects India will become the largest source of global oil demand growth out to 2030, in contrast with China, where fuel demand may have already peaked. FGE analyst Dylan Sim said Indian gasoline consumption and diesel demand are on track to grow around 4% and 2% per year, respectively, over the next decade or so. 'Couple that with the market volatility and uncertainties seen in recent years, it makes sense for these private companies to try and diversify their businesses,' Sim said. PRIVATE PLANTS HOLD CRUDE ADVANTAGE Offering discounts and growing their networks of big, modern stations featuring expansive retail offerings, private sector operators expanded their share of diesel sales to 11.5% and gasoline sales to 9.2% in the fiscal year that ended in March 2025, up from 5.2% and 6.7% respectively two years earlier, government data showed. Reliance, controlled by billionaire Mukesh Ambani, and Nayara have a key advantage that allows them to undercut the dominant state-owned refiners at the pump. They can run cheaper crudes through their plants than their bigger rivals, which have simpler, aging refineries. The two are the country's biggest buyers of discounted Russian crude, available since 2022. While the private refiners do not publish their refining margins, analysts at Jefferies expect Reliance's margin to hold around $2 a barrel stronger than the benchmark Singapore refining margin due to its blending of cheaper Russian and Canadian crudes. Reliance sells fuels through Jio-BP, its retailing tie-up with UK major BP which has 1,916 outlets in India. Its domestic sales volumes of diesel rose by 35% and gasoline by 24% in the quarter ended in March from a year ago, Reliance told analysts in May, without specifying volumes. Jio-BP plans to invest about 10 billion rupees ($117 million) annually to expand its local footprint in coming years as it sees a 'long pathway' and growth in diesel demand in India through at least 2040, Vinod Tahiliani, chief financial officer at Reliance BP Mobility, told Reuters. Jio-BP offers discounts of 1 rupee ($0.01) per litre of diesel and petrol off the price charged by state-owned retailers at its service stations. Nayara, whose biggest shareholder is Russia's Rosneft, in April reintroduced discounts of 2-3 rupees per litre on gasoline and 1 rupee per litre on diesel. Selling through more than 6,500 fuel stations, it aims to add 400 this year, according to its website. Nayara did not reply to a request for comment. State players Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which operate more than 90% of India's roughly 97,000 filling stations, have not cut pump prices as they seek to recoup losses on sales of cooking gas at government-fixed below-market rates, company sources say. The three did not respond to Reuters' requests for comment. India, meanwhile, is expanding its highway network and auctioning large roadside plots for building fuel stations featuring a host of amenities for motorists. Sukhmal Jain, who recently retired as head of marketing at BPCL, said state refiners are rapidly building their networks, including bidding for highway-side plots, and looking to offer services such as eateries, recreational areas and gym facilities in order to compete and boost sales. The state retailers are also opening stores under a common brand name Apna Ghar, which means 'Own House', with amenities such as dormitories, barbers, self-cooking facilities, laundry, and doctors on call for truckers who are on the road for more than 20-25 days a month, Jain said. India's oil ministry said recently that Apna Ghar operates at 350 locations with 4,431 beds. S.P. Singh, who manages a fleet of about 800 trucks and 150 trailers for New Delhi-based Chaudhary Transport, said his drivers are drawn to the amenities and cheaper fuel at private operators. 'They have convenience stores and cafes. Their staff is more responsive to customers and their toilets are clean,' he said. ($1 = 85.7900 Indian rupees)
The Sun
a day ago
- Business
- The Sun
India's private refiners shift focus to domestic fuel sales
NEW DELHI: India's two major private-sector refiners, which have long prioritised exports, are turning to local sales, grabbing share in the country's fast-growing $150 billion fuel retail market as weaker global demand squeezes profit margins offshore. Reliance Industries and Nayara Energy are stepping up sales at home as fuel demand growth slows in developed markets and China, the world's second biggest oil consumer, with the transition to electric vehicles. The lower demand offshore combined with supply competition from new refiners, such as Dangote in Nigeria, and rising exports from China's underutilised processors have compressed global refining margins and have made the Indian market, where suppliers save on freight and taxes, more attractive. As a result, 'private refiners are increasingly looking to supply to the domestic market, which is still growing at a healthy pace,' said Prashant Vasisht, senior vice president at credit rating firm ICRA. The International Energy Agency expects India will become the largest source of global oil demand growth out to 2030, in contrast with China, where fuel demand may have already peaked. FGE analyst Dylan Sim said Indian gasoline consumption and diesel demand are on track to grow around 4% and 2% per year, respectively, over the next decade or so. 'Couple that with the market volatility and uncertainties seen in recent years, it makes sense for these private companies to try and diversify their businesses,' Sim said. PRIVATE PLANTS HOLD CRUDE ADVANTAGE Offering discounts and growing their networks of big, modern stations featuring expansive retail offerings, private sector operators expanded their share of diesel sales to 11.5% and gasoline sales to 9.2% in the fiscal year that ended in March 2025, up from 5.2% and 6.7% respectively two years earlier, government data showed. Reliance, controlled by billionaire Mukesh Ambani, and Nayara have a key advantage that allows them to undercut the dominant state-owned refiners at the pump. They can run cheaper crudes through their plants than their bigger rivals, which have simpler, aging refineries. The two are the country's biggest buyers of discounted Russian crude, available since 2022. While the private refiners do not publish their refining margins, analysts at Jefferies expect Reliance's margin to hold around $2 a barrel stronger than the benchmark Singapore refining margin due to its blending of cheaper Russian and Canadian crudes. Reliance sells fuels through Jio-BP, its retailing tie-up with UK major BP which has 1,916 outlets in India. Its domestic sales volumes of diesel rose by 35% and gasoline by 24% in the quarter ended in March from a year ago, Reliance told analysts in May, without specifying volumes. Jio-BP plans to invest about 10 billion rupees ($117 million) annually to expand its local footprint in coming years as it sees a 'long pathway' and growth in diesel demand in India through at least 2040, Vinod Tahiliani, chief financial officer at Reliance BP Mobility, told Reuters. Jio-BP offers discounts of 1 rupee ($0.01) per litre of diesel and petrol off the price charged by state-owned retailers at its service stations. Nayara, whose biggest shareholder is Russia's Rosneft, in April reintroduced discounts of 2-3 rupees per litre on gasoline and 1 rupee per litre on diesel. Selling through more than 6,500 fuel stations, it aims to add 400 this year, according to its website. Nayara did not reply to a request for comment. State players Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which operate more than 90% of India's roughly 97,000 filling stations, have not cut pump prices as they seek to recoup losses on sales of cooking gas at government-fixed below-market rates, company sources say. The three did not respond to Reuters' requests for comment. SERVICE STATIONS GET CREATIVE India, meanwhile, is expanding its highway network and auctioning large roadside plots for building fuel stations featuring a host of amenities for motorists. Sukhmal Jain, who recently retired as head of marketing at BPCL, said state refiners are rapidly building their networks, including bidding for highway-side plots, and looking to offer services such as eateries, recreational areas and gym facilities in order to compete and boost sales. The state retailers are also opening stores under a common brand name Apna Ghar, which means 'Own House', with amenities such as dormitories, barbers, self-cooking facilities, laundry, and doctors on call for truckers who are on the road for more than 20-25 days a month, Jain said. India's oil ministry said recently that Apna Ghar operates at 350 locations with 4,431 beds. S.P. Singh, who manages a fleet of about 800 trucks and 150 trailers for New Delhi-based Chaudhary Transport, said his drivers are drawn to the amenities and cheaper fuel at private operators. 'They have convenience stores and cafes. Their staff is more responsive to customers and their toilets are clean,' he said. ($1 = 85.7900 Indian rupees)
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Business Standard
a day ago
- Business
- Business Standard
Private refiners tap domestic fuel market as export margins tighten
India's two major private-sector refiners, which have long prioritised exports, are turning to local sales, grabbing share in the country's fast-growing $150 billion fuel retail market as weaker global demand squeezes profit margins offshore. Reliance Industries and Nayara Energy are stepping up sales at home as fuel demand growth slows in developed markets and China, the world's second biggest oil consumer, with the transition to electric vehicles. The lower demand offshore combined with supply competition from new refiners, such as Dangote in Nigeria, and rising exports from China's underutilised processors have compressed global refining margins and have made the Indian market, where suppliers save on freight and taxes, more attractive. As a result, "private refiners are increasingly looking to supply to the domestic market, which is still growing at a healthy pace," said Prashant Vasisht, senior vice president at credit rating firm ICRA. The International Energy Agency expects India will become the largest source of global oil demand growth out to 2030, in contrast with China, where fuel demand may have already peaked. FGE analyst Dylan Sim said Indian gasoline consumption and diesel demand are on track to grow around 4 per cent and 2 per cent per year, respectively, over the next decade or so. "Couple that with the market volatility and uncertainties seen in recent years, it makes sense for these private companies to try and diversify their businesses," Sim said. PRIVATE PLANTS HOLD CRUDE ADVANTAGE Offering discounts and growing their networks of big, modern stations featuring expansive retail offerings, private sector operators expanded their share of diesel sales to 11.5 per cent and gasoline sales to 9.2 per cent in the fiscal year that ended in March 2025, up from 5.2 per cent and 6.7 per cent respectively two years earlier, government data showed. Reliance, controlled by billionaire Mukesh Ambani, and Nayara have a key advantage that allows them to undercut the dominant state-owned refiners at the pump. They can run cheaper crudes through their plants than their bigger rivals, which have simpler, aging refineries. The two are the country's biggest buyers of discounted Russian crude, available since 2022. While the private refiners do not publish their refining margins, analysts at Jefferies expect Reliance's margin to hold around $2 a barrel stronger than the benchmark Singapore refining margin due to its blending of cheaper Russian and Canadian crudes. Its domestic sales volumes of diesel rose by 35 per cent and gasoline by 24 per cent in the quarter ended in March from a year ago, Reliance told analysts in May, without specifying volumes. Jio-BP plans to invest about Rs 10 billion ($117 million) annually to expand its local footprint in coming years as it sees a "long pathway" and growth in diesel demand in India through at least 2040, Vinod Tahiliani, chief financial officer at Reliance BP Mobility, told Reuters. Jio-BP offers discounts of 1 rupee ($0.01) per litre of diesel and petrol off the price charged by state-owned retailers at its service stations. Nayara, whose biggest shareholder is Russia's Rosneft, in April reintroduced discounts of 2-3 rupees per litre on gasoline and 1 rupee per litre on diesel. Selling through more than 6,500 fuel stations, it aims to add 400 this year, according to its website. Nayara did not reply to a request for comment. State players Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which operate more than 90 per cent of India's roughly 97,000 filling stations, have not cut pump prices as they seek to recoup losses on sales of cooking gas at government-fixed below-market rates, company sources say. The three did not respond to Reuters' requests for comment. SERVICE STATIONS GET CREATIVE India, meanwhile, is expanding its highway network and auctioning large roadside plots for building fuel stations featuring a host of amenities for motorists. Sukhmal Jain, who recently retired as head of marketing at BPCL, said state refiners are rapidly building their networks, including bidding for highway-side plots, and looking to offer services such as eateries, recreational areas and gym facilities in order to compete and boost sales. The state retailers are also opening stores under a common brand name Apna Ghar, which means "Own House", with amenities such as dormitories, barbers, self-cooking facilities, laundry, and doctors on call for truckers who are on the road for more than 20-25 days a month, Jain said. India's oil ministry said recently that Apna Ghar operates at 350 locations with 4,431 beds. S.P. Singh, who manages a fleet of about 800 trucks and 150 trailers for New Delhi-based Chaudhary Transport, said his drivers are drawn to the amenities and cheaper fuel at private operators. "They have convenience stores and cafes. Their staff is more responsive to customers and their toilets are clean," he said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
