Diesel, kerosene and cooking gas prices could be raised soon while the government might separately take up a proposal to raise the cap on supply of subsidised LPG cylinders.

The government may take a look at raising the cap on supply of subsidised LPG cylinders to 9 per household in a year from current limit of six along with the Vijay Kelkar Committee recommendations to deregulate diesel prices by next year along with steep hike in cooking fuel rates.

The oil ministry has moved two separate cabinet notes - one to raise cap on supply of subsidised cooking gas cylinders and the other to increase fuel prices, particularly diesel, by less than a rupee per month to pair it with market rates and eventually deregulate it in next 15 months.

The ministry has also proposed to reduce one-third subsidy on kerosene by 2014-15 and on cooking gas by a quarter in this year, government officials said. According to oil ministry's recent data, state oil firms are losing Rs 9 a litre on diesel, Rs 30.60 on kerosene and Rs 490 per cylinder on cooking gas.
The proposals will substantially reduce government's subsidy burden on diesel, kerosene and liquefied petroleum gas (LPG), officials said. The estimated fuel subsidy for 2012-13 is about Rs 166,000 crore, out of which the finance ministry has sanctioned Rs 30,000 crore and released the first installment of Rs 10,000 crore to state oil marketing firms this week.

Plans to charter floating terminal land-based project to be ready by '16

Petronet LNG Limited is planning to charter a floating LNG (liquefied natural gas) storage and regasification unit (FSRU) to bring LNG to the AP coast early by 2014 while it expects to complete the land-based LNG terminal at Gangavaram port by 2016. The company made this revelation after it concluded the public hearing for developing the land-based terminal on Thursday. “Petronet LNG Limited is fully committed to this project and is working on various options for bringing gas early, to meet the energy deficit, both in the state and in other parts of the country,” the company said while stating that chartering an FSRU was being considered to bring LNG much ahead of the completion of land-based terminal.

Hike being mulled as govt scrambles to find ways to meet Rs 1,60,000 cr deficit expected this fiscal on selling diesel, LPG and kerosene below production cost

Diesel prices may be hiked by Rs 10 per litre over a 10-month period and kerosene rates increased by same quantum over the next two years if a proposal being mulled in the Oil Ministry is accepted.

Integrated refinery expansion project gets environmental clearance

Kochi Refinery Ltd (KRL), which is embarking on big-ticket expansion plans in the southern state of Kerala, has received the crucial green clearance from the Union ministry of environment & forests last month. This will help the company to go ahead with the integrated refinery expansion project (IREP) and plan for downstream projects. Kochi Refinery, a unit of Bharat Petroleum Ltd (BPCL), currently has a refining capacity of 9.5 million metric tonne per annum (mmtpa ) to produce Euro-III and IV compliant auto-fuels and various other petroleum products.

The three firms -- IOC, RIL and BPCL -- have retained their last year's respective ranks

State-run Indian Oil Corp is the biggest company in terms of revenue, followed by Reliance Industries, according to the Fortune 500 list of Indian companies for 2012. This year's list of the country's 500 largest corporations, compiled by the business magazine Fortune's Indian edition, features as many as 55 new entities.

Appoints Foster Wheeler as consultant to prepare project report

Even as domestic gas production has fallen 8 per cent, Oil India Ltd (OIL) is planning to set up a liquefied natural gas ( LNG) receiving terminal in India. The company plans to set up a 2.5-million tonne (mt) capacity terminal. According to an industry executive in the know, Geneva-based Foster Wheeler AG has been appointed consultant to prepare a project report for the foray into imported gas. When asked, Ananth Kumar, director (finance), Oil India, confirmed the appointment of a consultant about a fortnight ago, but did not divulge the name, citing a confidentiality clause in the contract.

Oil marketing companies have to mix 5% ethanol with petrol;CCEA approves market-based pricing of the biofuel

The Union Ministry of Environment and Forests has cleared Bharat Petroleum Corporation Limited’s Kochi refinery expansion, paving the way for the facility here to become the largest public sector refinery in the country.

Completion of the Integrated Refinery Expansion Project will take the capacity of the refinery to 15.5 million tonnes a year from the current level of 9.5 million tonnes.

The wait for the east coast to have a liquefied natural gas (LNG) terminal might get longer, with Bharat Petroleum Corp Ltd (BPCL) and Oil and Natural Gas Corp Ltd (ONGC), the two state-run companies that had proposed to jointly develop a terminal in Mangalore, putting the plan on hold.

Senior executives in both companies say how far the two partners could sell the fuel in the domestic market is under doubt. Given that the Dabhol and Kochi terminals will be commissioned next year, Mangalore will be well-connected by pipelines, said a senior BPCL executive, who requested anonymity.