Government policy targets of blending 20% ethanol in petrol by 2030
Government has been promoting use of ethanol as a blend stock with main automotive fuel like petrol in line with the National Policy on Biofuels -2018 under the Ethanol Blended Petrol (EBP) Programme. This policy envisages an indicative target of blending 20% ethanol in petrol by 2030. Department of Food & Public Distribution (DFPD) has informed that the production of ethanol varies from distillery to distillery and depends upon various factors viz. cost of raw material, conversion cost, efficiency of distillery plants etc. Several supply and demand side interventions have been initiated by the Government including enhancing scope of raw material for ethanol production and fixing remunerative prices of ethanol from different feedstocks being utilized for ethanol production. Based on the ethanol supply offers, Public Sector Oil Marketing Companies (OMCs) have allocated 3.255 billion liters for Ethanol Supply Year (ESY) (period from Dec. to Nov.) 2020-21 to be blended with petrol under the EBP Programme. In order to enhance the ethanol production capacity in the country, DFPD has informed that Government has notified a modified scheme on January 14, 2021 for extending financial assistance in the form of interest subvention on loans advanced by Banks/NCDC/IREDA/NBFCs and any other financial institutions to project proponents for different activities viz. setting up of new distilleries, expansion of existing capacity, installation of Zero Liquid Discharge (ZLD) System and Molecular Sieve Dehydration (MSDH) Column, etc. for production of first generation (1G) ethanol from feedstock such as cereals (rice, wheat, barley, corn, sorghum), sugarcane and sugar beet, etc. including granaries and surplus rice with Food Corporation of India (FCI). The Government also fixed remunerative prices of ethanol from such feedstock i.e. Rs 51.55 per litres from damaged food grains and Rs 56.87 per litres from FCI rice. This information was given by the Union Minister for Petroleum and Natural Gas Shri Dharmendra Pradhan in a written reply in the Lok Sabha.
US replaces Iran in India’s crude basket in 2020-21
In a major shift in India’s crude basket and bilateral trade, the country’s crude oil imports from Iran dropped to zero during the current financial year from a historic high of 27.2 million tonne (MT) in 2016-17. The majority of Iran crude was replaced by imports from the United States that increased from zero in 2016-17 to 10.8 MT during the April to January period of the current financial year. India started cutting Iran imports after the Donald Trump administration tightened the sanctions on the oil major and withdrew unilaterally from the nuclear deal. In 2015, Iran, the US, China, Germany, Russia, France, and the UK had signed the deal that led to the lifting of sanctions on Iran. However, the Trump administration withdrew the US from the deal in 2018 and re-imposed sanctions on Iran. The other countries that replaced Iran crude in India include Saudi Arabia, Iraq, and Nigeria. In 2017-18, the imports from Iran were seen at 22.6 MT, while it dipped to 23.9 MT and 1.7 MT respectively in 2018-19 and 2019-20. During the same period, crude oil imports from the US increased to 1.9 MT in 2017-18, 6.2 MT in 2018-19, and 10.3 MT in 2019-20, based on petroleum ministry data. During the April to January period, crude oil imports from the US stood at Rs 166.14 billion in value terms from zero in 2016-17. After Joe Biden took charge, there were speculations that the US may revisit sanctions on Iran. According to the media reports, Iran officials have already approached the Indian national oil companies to restart imports from that country. China on the other hand did not stop Iran imports despite the US sanctions. India is importing crude oil and gas from the US through a combination of term contracts and on a spot basis. During the same period, India’s crude oil and petroleum products import bill increased by 56 percent. The country’s import bill stood at Rs 5420 billion in 2016-17 and increased to Rs 8430 billion in 2019-20. Last week, Biden had decided to continue the national emergency declared with respect to Iran and to extend sanctions against that country. He added that ‘Iran continues to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the US.’
Centre collected Rs 6.58L cr in taxes on fuel
The Centre has collected Rs 6.85 lakh crore from the motorists among others towards taxes levied on petrol and diesel in the last three financial years from 2018-19 to 2020-21, said Union petroleum and natural gas minister Dharmendra Pradhan on Monday. In a written reply to the questions asked by Congress MP A Revanth Reddy among other members in Lok Sabha, he said the tax collection from petrol and diesel in 2013 was about Rs 52,537 crore. It was Rs 2,13 lakh crore in 2019-19, Rs 1.78 lakh crore in 2019-20 and Rs 2.94 lakh in 2020-21. The price of the domestic cooking gas cylinder refill increased from Rs 410.5 on March 1, 2014, to Rs 819 as of March 1, 2021. The price of petrol which was Rs 73.16 per litre on March 1, 2014, increased to Rs 91.17 (in Delhi) on March 1, 2021. The price of diesel went from Rs 55.48 per litre on March 1, 2014 to Rs 81.47 on the corresponding date in 2021. The school dropout rate at secondary level stood at 13.5 per cent, upper primary 2.9 per cent and 1.9 per cent at primary level in Telangana in 2018-19, the minister stated in his written reply The minister also explained that the prices of petrol and diesel have been made market determined by the government with effect from 26.06.2010 and 19.10.2014, respectively. Since then, the public sector Oil Marketing Companies (OMCs) take appropriate decision on the pricing of petrol and diesel in line with their international product prices, exchange rate, tax structure, inland freight and other cost elements. The prices of petroleum products in the country are linked to the price of the respective products in the international market. The taxes on petrol and other fuels imposed in various countries keep changing from time to time as per the policy of their respective governments, and in some countries, the percentage of taxes on petrol is higher than the current percentage of tax on petrol in India, the Union minister stated. The taxes are imposed for meeting the budgetary requirement of the government at the centre and state government in order to generate resources for infrastructure and other developmental items of expenditure keeping in view the present fiscal position. Taxes are increased or decreased depending on several factors like the requirement of the government, market situation etc, he said.
Cairn Energy shifts to onshore Egypt from N. Sea in deal flurry
Oil and gas producer Cairn Energy is shifting its focus to a growth portfolio onshore Egypt from declining offshore fields in the British North Sea in a flurry of deals worth around $1.5 billion which it announced on Tuesday. Cairn, in partnership with Ceiron, agreed to buy onshore fields in Egypt’s Western Desert from Royal Dutch Shell for up to $926 million and sell its stakes in British fields Catcher and Kraken to private firm Waldorf Production for $460 million. “We’re transitioning from that portfolio in decline into one where we see that we can build greater cashflow generation into the future,” Cairn Chief Simon Thomson told a conference call. Cairn, which produced around 21,000 barrels per day (bpd) last year, can boost its net share from the Shell assets to 50,000 bpd from 35,000 bpd within a couple of years, Thomson added. The deal would triple Cairn’s reserves. Cairn is also in talks with no set deadline with the Indian government about an arbitration award worth around $1.7 billion, but Cairn is actively pursuing alternatives, such as selling the consideration or enforcement, Thomson said.
Centre collected Rs 6.58L cr in taxes on fuel
The Centre has collected Rs 6.85 lakh crore from the motorists among others towards taxes levied on petrol and diesel in the last three financial years from 2018-19 to 2020-21, said Union petroleum and natural gas minister Dharmendra Pradhan on Monday. In a written reply to the questions asked by Congress MP A Revanth Reddy among other members in Lok Sabha, he said the tax collection from petrol and diesel in 2013 was about Rs 52,537 crore. It was Rs 2,13 lakh crore in 2019-19, Rs 1.78 lakh crore in 2019-20 and Rs 2.94 lakh in 2020-21. The price of the domestic cooking gas cylinder refill increased from Rs 410.5 on March 1, 2014, to Rs 819 as of March 1, 2021. The price of petrol which was Rs 73.16 per litre on March 1, 2014, increased to Rs 91.17 (in Delhi) on March 1, 2021. The price of diesel went from Rs 55.48 per litre on March 1, 2014 to Rs 81.47 on the corresponding date in 2021. The school dropout rate at secondary level stood at 13.5 per cent, upper primary 2.9 per cent and 1.9 per cent at primary level in Telangana in 2018-19, the minister stated in his written reply The minister also explained that the prices of petrol and diesel have been made market determined by the government with effect from 26.06.2010 and 19.10.2014, respectively. Since then, the public sector Oil Marketing Companies (OMCs) take appropriate decision on the pricing of petrol and diesel in line with their international product prices, exchange rate, tax structure, inland freight and other cost elements. The prices of petroleum products in the country are linked to the price of the respective products in the international market. The taxes on petrol and other fuels imposed in various countries keep changing from time to time as per the policy of their respective governments, and in some countries, the percentage of taxes on petrol is higher than the current percentage of tax on petrol in India, the Union minister stated. The taxes are imposed for meeting the budgetary requirement of the government at the centre and state government in order to generate resources for infrastructure and other developmental items of expenditure keeping in view the present fiscal position. Taxes are increased or decreased depending on several factors like the requirement of the government, market situation etc, he said.