ONGC in talks with Saudi Arabia on new refinery
India’s state-owned Oil and Natural Gas Corporation (ONGC) is reportedly in talks with Saudi Arabia to develop a greenfield refinery in Gujarat, the home state of Indian Prime Minister Narendra Modi. The proposed coastal refinery will be set up in Jamnagar district through a joint venture company, an unnamed government official told moneycontrol.com, an Indian financial portal.
Commercial LPG cylinder price cut by Rs 58.50 from today, ATF price hiked
Oil marketing companies have cut the price of 19 kg commercial LPG gas cylinders by Rs 58.50, effective 1 July. In Delhi, this brings the new price down to Rs 1,665 per cylinder. Meanwhile, price of jet fuel (ATF) was sharply increased by 7.5 per cent after three rounds of price cuts. Aviation turbine fuel (ATF) prices have been raised by Rs 6,271.5 per kilolitre, or 7.5%, reaching Rs 89,344.05 per kilolitre in the national capital, which is home to one of the busiest airports in India, according to state-owned fuel retailers. This price hike comes as a significant reversal, accounting for half of the total reductions made over the past three months. The last reduction was on June 1, when prices fell by Rs 2,414.25 per kilolitre (2.82%), bringing the rate down to Rs 83,072.55 per kilolitre. Earlier, there were additional cuts of 4.4% (Rs 3,954.38 per kilolitre) on May 1 and a notable 6.15% (Rs 5,870.54 per kilolitre) on April 1. The recent increase in ATF prices aligns with a rise in international oil prices following Israel’s recent military actions against Iran. This escalation in fuel costs is expected to add financial strain on commercial airlines, which allocate nearly 40% of their operating expenses to fuel.
APM gas price hits ceiling of $6.75 per mmBtu
he price of natural gas used for producing CNG for vehicles and cooking gas was raised 5 per cent for July, following a surge in oil prices triggered by Israel’s military strike on Iran. As part of the monthly revision, the price of natural gas from legacy fields operated by state-owned companies was increased to USD 6.75 per million British thermal units, up from USD 6.41, according to a notification from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry. USD 6.75 per mmBtu is the ceiling price for gas from legacy fields, known as APM gas, which accounts for roughly half the input used in producing CNG. It is also utilised in power generation, fertiliser production, and piped directly to households for cooking A higher input gas price would squeeze margins of city gas retailers. City gas retailers may choose to hike CNG prices if the increase pinches them. APM gas price is revised on the first of every month, set at 10 per cent of the average import price of crude oil in the preceding month. But this price is subject to a floor or minimum rate and a ceiling or maximum rate. The ceiling price for 2025-26 is USD 6.75.