India indicates readiness to release more oil reserves
India will take “appropriate” steps to calm the rise in oil prices, triggered by Russia’s invasion of Ukraine, the junior oil minister said on Monday, indicating the country could release more oil from national stocks if required. India, the world’s third biggest oil consumer and importer, imports about 85% of its oil needs. “Government of India is ready to take all appropriate action, as deemed fit, for mitigating market volatility and calming the rise in crude oil prices,” Rameswar Teli said in a written reply to lawmakers. Last month India said it was prepared to release additional crude from its national stocks in support of efforts by other major oil importers to mitigate surging global prices. Teli said in November the federal government had joined other major consumers to release 5 million barrels of oil from its strategic petroleum reserves to contain inflationary pressures. On Monday, Teli said India is “closely monitoring global energy markets as well as potential energy supply disruptions as a fallout of the evolving geopolitical situation”. India buys only a fraction of its oil from Russia but has been hit hard by a spike in global oil prices due to Western sanctions against Moscow, the world’s second largest crude exporter.
Oil on boil as Iran launches attack on Israel; What would be the impact on petrol prices?
Crude oil prices are again seen to be moving towards $100 per barrel as Iran launched attacks against Israel on April 13, putting strain on import-dependent India. India—a net importer of crude oil—is highly sensitive to international oil prices as it receives over 85 percent of its requirements from other nations. This directly links the retail prices of petrol and diesel sold in the country to prices in the international market. Brent crude futures on April 12 settled at $90.45 per barrel, around 1 percent higher on account of tensions building up between Iran and Israel. India’s oil secretary Pankaj Sharma on April 2 had pointed out that rising crude oil prices are a cause of concern. The remarks by the oil ministry official had come after Indian oil marketing companies (OMCs) had slashed prices of petrol and diesel by Rs 2 per litre on March 14 after crude oil prices were trading around $80 per barrel for quite some time.
Govt set to take measures through Gas-based Power Plants
To meet the high electricity demand in the country during the summer season, the Government of India has decided to operationalize gas-based power plants. To ensure maximum power generation from Gas-Based Generating Stations. The government has issued directions to all Gas-Based Generating Stations under Section 11 of the Electricity Act, 2003 (under which the appropriate government may specify that a generating company shall, in extraordinary circumstances operate and maintain any generating station in accordance with the directions of that Government). As per the arrangement, Grid-India will inform the Gas-based Generating Stations in advance, of the number of days for which Gas-based power is required. Gas-Based Generating Stations holding Power Purchase Agreements (PPAs) with Distribution Licensees shall first offer their power to PPA holders. If the power offered is not utilised by any PPA holder, then it shall be offered in the power market. Gas-Based Generating Stations not tied to PPAs must offer their generation in the power market. A high-level committee headed by Chairperson of, CEA[ Central Electricity Authority] has been constituted to facilitate the implementation of this direction.