Shell India Launches New Advance Fuel Save 10W30 For Motorcycles
Shell India has launched a new engine oil for motorcycles that claims to reduce running costs by improving the vehicle’s mileage. The company’s new Advance Fuel Save 10W30 is priced at Rs. 670 per litre and will be available pan India in standard 1-litre packs. Shell says that its new engine oil not only helps improves the bike’s mileage but also offers high-temperature protection to engines and no power loss at the end of 12,000km. Speaking at its launch, Debanjali Sengupta, Country Head, Shell Lubricants India, said, “As the world’s leading lubricants supplier, we are driven by market demand, detailed insights, and the commitment to deliver high-quality products suited to our consumers’ evolving needs. This product is a solution for value-conscious daily bike riders for whom mileage or reducing the running cost is an important consideration amidst rising fuel prices.”
Fitch cuts India’s gas consumption growth to 5 pc on high prices
Fitch Ratings downgraded India’s gas consumption forecast for the current fiscal year to 5% growth, citing a recent jump in domestic gas prices and high LNG rates as factors slowing the transition to the environmentally beneficial fuel. For the six-month period beginning April 1, the government more than doubled the price of gas from domestic fields to USD 6.1 per million British thermal unit. “We expect natural gas consumption in India to grow by 5% in FY23 (FY22 estimate: 6.5%), down from our previous estimate of 7% growth, as the recent sharp increase in domestic gas prices and high LNG prices – both spot and term contracts linked to oil prices – will, in our opinion, slow the shift to natural gas,” the rating agency said. Domestic gas production fulfils around half of current use, with the rest coming from liquefied natural gas imports (LNG). The recent spike in spot LNG prices to levels far higher than the long-term contracted LNG from the United States, according to Fitch, will likely improve GAIL (India) Ltd’s profitability from its natural gas marketing division. Oil marketing companies may be required to raise prices further’
India soaks up every major Russian oil variety as flows persist
India is doubling down on Russian crude oil purchases despite warnings from the US, snapping up every major grade from the OPEC+producer as its war in Ukraine nears a third month. India has a longstanding relationship with Russia that includes weapons buying, and purchasing of oil adds to the Kremlin’s coffers while it tackles financial sanctions. President Joe Biden last week told Prime Minister Narendra Modithat the US was ready to help India diversify its energy imports, but self-sanctioning of Russian crude by some is making it cheap and alluring. The meeting between to the two leaders followed more pointed commentary from Biden’s top economic adviser earlier this month, who said that the US had warned India against aligning itself with Russia. The war has fanned inflation and driven benchmark oil futures above $100 a barrel. India has bought millions of barrels of Urals crude in the spot market since the end of February, according to data compiled by Bloomberg, along with an ESPO cargo currently making its way to Sikka in the country’s west. It’s rare for the nation’s refiners to take the Far East grade because it’s transported in smaller ships and voyages are relatively long, making it less economical. Another major crude from Russia’s Far East — Sokol — has also been bought by state-run processors. Indian oil refiners haven’t purchased any Russian grades through public tenders so far this month and privately negotiated deals are likely to be appealing after buyers missed out on the steep discounts for similar cargoes being offered in Europe. Russian oil may get even cheaper for willing buyers. The European Union is facing mounting calls to curb its imports, while Chinese crude demand is under pressure from a Covid-19 resurgence that’s led to a series of lockdowns across the country. The US and U.K. have already pledged to ban Russian imports.
Indian Crude Oil Basket Price Rises Again, 10.32% Jump Since April 11
The Indian crude oil basket price rose to $107.92 per barrel on April 19, 2022, at an exchange rate of Rs 76.28 against the dollar, compared to $106.03 per barrel on April 18, 2022, at an exchange rate (Rs/$) of Rs 76.37, data showed on Wednesday. According to the Petroleum Planning and Analysis Cell report, the price of Indian crude was $97.82 per barrel on April 11, 2022, at an exchange rate of (Rs/$) 75.96, indicating a $10.10 per barrel, or 10.32 per cent, rise between April 11 and April 19, 2022. While the latest price is below the March average of $112.87, it has surged past the $103.02 per barrel on April 1 and well above the average cost in April last year of about $63 per dollar. That price rise between April 11 and 19 suggests an upward pressure likely on domestic fuel rates. Indeed, retailers held petrol and diesel prices steady for the 14th straight day on Wednesday after hiking fuel rates cumulatively by Rs 10 since March 22, when they restarted revision of prices after a nearly four-month hiatus.
India ends FY22 with 2.6 per cent drop in oil production
India’s crude oil production fell 2.67 per cent in the fiscal year ending March 31, as state-owned ONGC produced less than the target, but natural gas output rose helped by KG production by Reliance-BP. Crude oil production at 29.69 million tonnes in 2021-22 (April 2020 to March 2022) was 2.63 per cent lower than the 30.5 million tonnes output a year back and 11.67 per cent below the target of 33.61 million tonnes, according to official data released by the oil ministry. India’s crude oil production has been on a decline during the past few years. From 35.7 million tonnes in 2017-18, it fell to 34.2 million tonnes in the following year and 32.2 in 2019-20 and 30.5 million tonnes in 2020-21. The primary reason for the decline is the aging fields where natural production decline has set in. The output is being maintained by investing in technologies to boost the recovery rate. Oil and Natural Gas Corporation (ONGC) produced 19.45 million tonnes of crude oil in the fiscal FY22, which was 13.82 per cent lower than the target and 3.62 per cent less than the output in the previous fiscal year. This was due to less-than-anticipated production from the WO-16 cluster in the western offshore due to delay in mobilisation of a production unit and less oil in the NBP field due to an inspection-related shutdown, it said. Natural gas output, however, rose 18.66 per cent to 34 billion cubic meters in FY22. This is after Reliance Industries Ltd and its partner BP Plc started output from newer fields in the eastern offshore KG-D6 block. Five-times higher output from eastern offshore at 1.34 bcm offset a 5.7 per cent decline in production by ONGC. With demand returning with a rebound in economic activity, refineries processed 9 per cent more crude oil at 241.7 million tonnes in the 2021-22 fiscal. They produced 254.3 million tonnes of petroleum products, up from 233.5 million tonnes a year back and the target of 249.8 million tonnes for the fiscal. Refinery run was 89 per cent of the capacity in the fiscal, the data showed.