Oil spill continues despite temporary measures on Cauvery Basin Refinery pipeline in Nagai
Despite the temporary measures taken to arrest the leakage in the pipeline of the Cauvery Basin Refinery (CBR) of Chennai Petroleum Corporation Limited (CPCL) at Pattinamchery in Nagapattinam district, the oil spill continued to pollute the sea on Saturday. A senior CPCL official reported that the leakage had been clamped as a temporary measure in the early hours of Saturday. The officer explained that the tide was low between 1am and 4.45am on Saturday, during which the clamping was done after dumping sandbags around the pipeline on the shore. However, due to high tide, the pipeline was surrounded by seawater, causing the crack to continue to cause oil spills. T Sakthivel, a representative of the fishermen in the village, said that although a temporary arrest has been made, the leakage still continues. “The velocity of the spill has come down. They will take up the work again during the low tide in the early hours,” said Sakthivel.
Russia’s Oil Revenues Plunged By 48% In February
Russian tax revenue from crude oil and petroleum products plummeted by 48% in February from a year earlier due to the much lower price of Russia’s flagship crude grade after the EU banned imports of Russian oil, according to Bloomberg estimates based on official Russian data. Total tax revenues from oil and natural gas dipped by 46% year over year to $6.9 billion (521 billion Russian rubles) in February, per data from the Russian Finance Ministry published on Friday. Russia’s revenues from crude oil and oil products alone crumbled by 48% annually to $4.8 billion (361 billion rubles), according to Bloomberg’s calculations. Oil accounted for more than two-thirds of Russia’s energy tax revenue in February. Russian natural gas revenues also plummeted last month compared to February 2022, when Russia invaded Ukraine. Natural gas revenues slumped by 42% as Russia cut off gas supplies to a number of EU customers after the invasion. The plunge in the price of the flagship Russian crude grade, Urals, was the key reason for the lower revenues for the country for both January and February this year. Russia’s budget was $23.3 billion (1.76 trillion rubles) into deficit in January, compared to a surplus for January 2022, as state revenues from oil and gas plunged by 46.4% due to the low price of Urals and lower natural gas exports, the Russian Finance Ministry said last month. Russia’s budget revenues from oil and gas plunged in January by 46% compared to the same month last year due to the sanctions on Russian oil exports, which led to a slump in the price of Russia’s flagship crude grade. The average price of the Urals blend stood at $49.52 per barrel in January and February 2023, compared to $88.89 per barrel for the same months last year, the Russian Finance Ministry said earlier this week. The price of Urals averaged $49.56 a barrel in February 2023, or 1.86 times lower than the average price in February 2022 – $92.15 per barrel.
Each country to make own decision: US official on India buying Russian oil
The United States has said that “each country is going to make its own decision” when asked about India’s ties with Russia and purchase of oil from Russia. US Department of State Principal Deputy Spokesperson Vedant Patel said in an exclusive interview with ANI that, “Our understanding is that of course each country is going to make their own decisions. But the one thing that we’ve been clear about on Russia and specifically Russian energy sales is…why we’ve been such a big advocate for the oil price cap. Because what the price cap does is that it keeps oil and energy flowing onto the market and making sure that supply meets demands. But it also ensures that Russia doesn’t get a windfall of profits to fund its war machine. We’ve never intended for anybody to try and keep energy off of the market.” Asked about India’s stance on recent international events including the Ukraine conflict, Vedant Patel said that New Delhi has taken on an incredible role and they have an “ambitious agenda” for their G20 Presidency. He further said that Prime Minister Narendra Modi and External Affairs Minister S Jaishankar have been clear that “this is not the time of war” and a resolution needs to be made based on the United Nations charter. I think India has taken on an incredibly important role. You have to remember that one of the key things about this year 2023 is that India has the G20 Presidency and they have a very ambitious agenda for their G20 Presidency, one that the United States is ready to partner with them on. And as it relates to Ukraine, you have seen Prime Minister Modi and External Affairs Minister Jaishankar be very clear about how this is not the time for war and that a resolution needs to come one that is consistent with the UN charter. These are all values that we share also,” Patel said. During his meeting with Russian President Vladimir Putin in Samarkand last year, PM Narendra Modi said, “today’s era is not of war.” Since the beginning of the war between Russia and Ukraine in February last year, India has insisted on resolving the dispute through dialogue and diplomacy.
India’s oil buy from Russia surges, now more than one-third of total imports
India’s imports of crude oil from Russia soared to a record 1.6 million barrels per day in February and is now higher than combined imports from traditional suppliers Iraq and Saudi Arabia. Russia continued to be the single largest supplier of crude oil, which is converted into petrol and diesel at refineries, for a fifth straight month by supplying more than one-third of all oil India imported, according to energy cargo tracker Vortexa. Refiners continue to snap up plentiful Russian cargoes available at a discount to other grades. From a market share of less than 1 per cent in India’s import basket before the start of the Russia-Ukraine conflict in February 2022, Russia’s share of India’s imports rose to 1.62 million barrels per day in February, taking a 35 per cent share. India, the world’s third-largest crude importer after China and the United States, has been snapping Russian oil that was available at a discount after some in the West shunned it as a means of punishing Moscow for its invasion of Ukraine. The rise in Russian imports have been at the expense of Saudi Arabia and United States. Oil import from Saudi fell 16 per cent month-on-month and that from the US declined 38 per cent. According to Vortexa, Russia now accounts for more than the combined oil bought from Iraq and Saudi Arabia — India’s mainstay oil suppliers for decades.
India raises crude oil windfall tax, cuts diesel export tax
India raised its windfall tax on crude oil marginally while cutting the tax on exports of diesel, according to a government notification on Saturday. The windfall tax on crude was raised to 4,400 rupees ($53.87) per tonne from 4,350 rupees, effective immediately 4, while the tax on diesel export was cut to 0.5 rupees per litre from 1.5 rupees a litre. The government said it scrapped a windfall tax of 1.5 rupees a litre on aviation turbine fuel. The government imposed the taxes on crude and export of petroleum products in July to raise additional revenue from a sudden rise in profits of oil companies as global crude prices surged on Russia’s invasion of Ukraine, aiming to partly meet higher food and fertiliser subsidies. The tax is revised every fortnight, based on the international crude oil prices. The government expects to raise nearly 250 billion rupees ($3.1 billion) from the tax in the financial year through this month, and about 3.20 trillion rupees from factory gate duties on petroleum products. Industrial chambers including Federation of Indian Chambers of Commerce and Industry and some oil companies have asked the government to scrap the windfall profit tax on local crude oil producers, saying it was hitting investments in the sector.