New Delhi: Taking a cue from the RBI governor D Subbarao, market leader IndianOil Corporation indulged in grandstanding on Tuesday by saying state-run retailers would raise petrol price by almost R

‘Or cut excise duty and compensate our loss'

Fed up with the Centre's “indecision” on allowing an increase in fuel prices in the face of rising international crude prices, the oil marketing companies (OMCs) on Tuesday virtually threatened to increase petrol prices by Rs. 8.04 a litre. They said the government should either cut the excise duty on petrol and give them Rs. 49 crore a day in compensation or face a sharp price hike.

India has offered Qatar stake in some of the major petro projects, including the petrochemicals complex at Dahej in Gujarat, Indian Oil Corporation's (IOC's) LNG project in Ennore, Tamil Nadu, BPCL's petrochemical project in Kochi, petrochemical project in Mangalore and investment opportunity in the Paradip refinery and petrochemical project to further enhance its strategic partnership and ties.

Estimates point to 4-year-high of 4.9% rise in petroleum product sale trend likely to continue, says PPAC

The country’s diesel consumption rose a massive 11.9 per cent in 2011-12, leading to an expected 4.9 per cent growth in the sale of petroleum products in the just-ended financial year. That will mark a four-year-high growth, which is significantly above 2.9 per cent in 2010-11. The government’s projection for FY12 was 4.58 per cent.

India will raise retail prices of subsidised fuels, including diesel, once parliament approves the finance bill for the current fiscal year early next month, a senior government source with knowledge of the matter said on Thursday.

Parliament is expected to consider the finance bill on May 7 and approve it a couple of days after that.

Power cut-induced surge in demand during the second half of 2011-12 in both retail and bulk consumer segments pushed up diesel sales in the country by eight per cent over the previous fiscal. For the state-owned oil marketing companies, however, there was little to cheer as the growth only added to the mounting under-recoveries. Oil companies put the under-recovery at Rs.14 for every litre sold by them.

The Union government will have to amend the Atomic Energy Act, 1962, to divest its stakes in the Nuclear Power Corporation (NPC) which is engaged in increasing its capacity addition to 63,000 Mw by 2032 from the present 4,780 Mw. The state-owned entity’s authorised capital is Rs 15,000 crore, while the share capital is worth Rs 10,000 crore.

According to the Atomic Energy Act, 1962, a government company is one where the central government holds not less than 51 per cent of the paid-up share capital.

The Tamil Nadu government is planning to set up two 500-Mw LNG-based power plants to address the electricity shortage in the state.

One of the plants would be set up near the five-million-tonne-per-annum Indian Oil Corporation terminal that was set up after a memorandum of understanding was signed. The second plant plans to take advantage of GAIL’s Kochi-Bangalore LNG pipeline, which passes through Tamil Nadu.

In talks with Shell, Petronet LNG to book capacity

Faced with a shortfall in gas production from its KG-D6 field, Reliance Industries Ltd (RIL) is set to make its debut in the marketing of imported natural gas. India Gas Solutions, the equal joint venture between RIL and British Petroleum (BP) set up to source and market natural gas in India, will shortly bring in liquefied natural gas (LNG) through the terminals of Shell India and Petronet LNG.

New Delhi In what could give a reprieve to consumers who have been fearing another hike in petrol price, the government has decided to put the proposal in abeyance.