Govt cut cheaper APM gas supply to CNG retailers IGL, MGL, Adani Total Gas
The government has cut the supply of lower-cost APM gas to city gas distributors such as Indraprastha Gas Ltd, Mahanagar Gas Ltd, and Adani Total Gas Ltd, by up to 20 per cent, replacing the shortfall with more expensive fuel. GAIL (India) Ltd, the state-owned nodal agency for gas supply, has intimated about a cut in supply of gas from legacy fields, called Administered Price Mechanism (APM) gas, the three city retailers said in separate stock exchange filings. The production of APM gas, which is currently priced at $6.75 per million British thermal unit, is declining at the rate of 9-10 per cent annually as recovery from old and ageing fields falls. Oil and Natural Gas Corporation (ONGC) is investing in drilling more wells to maintain the output, but that additional cost is reflected in a higher price of the gas thus produced. Such gas is called new well gas and is priced at about $8 per mmBtu. In the last one year, APM gas supplies to city gas retailers have been cut by almost 50 per cent. With the latest cut, the APM gas now meets about 34 per cent of the total city gas requirement, down from 51 per cent previously.
China’s US Decoupling Collapses Trade in Key Petroleum Product
It’s been just days since China responded to US tariffs with its own set of eye-watering levies, but one corner of the petroleum market is already in crisis as bilateral trade collapses between the two heavyweights. The price of propane, a type of liquefied petroleum gas, has plummeted in the US because selling to China, its biggest customer after Japan, is no longer viable. Chinese buyers are scurrying to find alternative sources of the fuel, which is used for heating and plastics, but are getting gouged by traders taking advantage of their distress.
India’s 2025 Oil product demand expected to average 5.8 million barrels per day says OPEC
Organization of the Petroleum Exporting Countries or OPEC noted that in February, India’s oil demand inched up by 28 thousand barrels (tb) per day (d), y-o-y, down from growth of 132 tb/d, y-o-y, seen the previous month. The largest monthly increases in oil product demand were recorded in transportation fuels, including gasoline and diesel. Gasoline demand posted the largest increase of 67 tb/d, y-o-y, up from a 59 tb/d, y-o-y, increase seen the previous month. Growth in gasoline demand in February was supported by an increase in vehicle sales amid a rise in disposable income and personal mobility. Diesel demand expanded by 45 tb/d, y-o-y, below growth of 79 tb/d, y-o-y, seen the previous month. Robust growth in transport fuels and growth in LPG and naphtha demand are expected to support overall oil demand expansion in 2Q25 by 235 tb/d, y-o-y. In 2025, oil product demand in India is expected to grow by a healthy 209 tb/d, y-o-y, to average 5.8 million barrels per day.
India to set fresh target of 30 per cent ethanol blending in petrol by 2030: Report
India is preparing to set a new target of 30 percent ethanol blending in petrol by 2030, after successfully reaching the 20 percent mark by March this year, reported Business Standard citing sources. The original goal of 20 percent blending was initially planned for 2030 but was later advanced to the 2025-26 ethanol supply year (ESY). In the 2023-24 ESY, the country achieved an average ethanol blending rate of 14.6 percent, up from 12.06 percent in the previous ESY. Officials at the Petroleum and Natural Gas Ministry confirmed that inter-ministerial discussions have agreed to raise the national blending target to 30 per cent by the end of the decade, according to the news report.
India’s Oil Import Price Drops Below $70 for the First Time Since 2021
The average price of India’s crude oil imports fell to below $70 per barrel this month, for the first time since 2021, as international benchmarks plunged amid trade and tariff uncertainty. India, which imports 88% of the crude it consumes, saw its average cost of crude oil imports plunge by 17.87% in April compared to March 2024. The average import cost stood at $69.39 per barrel for the first two weeks of this month—the lowest level since August 2021, Indian outlet Hindustan Times reported on Tuesday. The lower import price could boost purchases by Indian refiners who are sensitive to the price of crude. The lowest crude import cost in nearly four years could also lead to lower prices for gasoline and diesel for Indian consumers, according to Hindustan Times. India last reduced the prices at the pump in March 2024, ahead of the general election last year. Low import bills are very good news for India, the world’s third-largest crude oil importer, which depends on imports for more than 88% of its oil consumption. India’s crude import dependence hit a record high of 88.2% in the April 2024 to February 2025 period and set a record high in the fiscal year ending March 31, 2025, as Indian fuel demand continues to grow while domestic crude production remains flat. The Indian import dependence in the full 2023/2024 fiscal year averaged 87.8%. As import and demand trends have shown in recent months, the 2024/2025 fiscal year will see an even higher – an all-time high – reliance on crude oil imports. Last year, India surpassed China as the world’s largest oil demand driver, amid growing demand for fuel transportation in India and slowing gasoline and diesel demand in China due to the advance of electric vehicles and LNG-fueled trucks in the world’s top crude oil importer. This year was set for another healthy demand growth in India, but the U.S. trade policies with increased tariffs and uncertainties could undermine global trade and economic growth.
Can US India energy bridge work
When it comes to ensuring a stable supply of Liquefied Natural Gas (LNG), India needs to maintain strong diplomatic ties with only the four largest gas suppliers, i.e. US, Qatar, Australia and Russia, said Crown LNG’s CEO Swapan Kataria. Kataria leads a company, which develops, finances, owns and operates LNG terminals in locations exposed to harsh weather conditions. Following his session at the News18 Rising Bharat Summit at Bharat Mandapam, Kataria sat down with Firstpost to speak about Crown LNG’s project at Kakinada Deepsea Port in Andhra Pradesh, energy challenges India is currently facing and how LNG can prove to be a solid bridge between India and the United States. In February this year, Kataria signed a Memorandum of Understanding (MoU) with Indian Gas Exchange (IGE) CEO Rajesh Kumar to set up an LNG terminal in Andhra Pradesh. “The LNG terminal will be set up at an estimated cost of ₹90 billion. The facility is expected to meet the commercial and industrial needs in South India,” Kakinada Member of Parliament T. Uday Srinivas said in a statement at that time.
Back to Russian gas? Trump-wary EU has energy security dilemma
More than three years after Russia’s invasion of Ukraine, Europe’s energy security is fragile. U.S. liquefied natural gas helped to plug the Russian supply gap in Europe during the 2022-2023 energy crisis. But now that President Donald Trump has rocked relationships with Europe established after World War Two, and turned to energy as a bargaining chip in trade negotiations, businesses are wary that reliance on the United States has become another vulnerability. Against this backdrop, executives at major EU firms have begun to say what would have been unthinkable a year ago: that importing some Russian gas, including from Russian state giant Gazprom, could be a good idea.
Gas meters must be verified before use in commerce under new draft rules: Govt
The Department of Consumer Affairs has proposed draft rules mandating the verification, testing and stamping of all gas meters used for domestic, commercial and industrial purposes before they are put to use, in a move aimed at promoting accuracy in gas measurement across India’s trade and commerce sectors. According to the draft framed under the Legal Metrology (General) Rules, 2011, re-verification of gas meters in use will also be mandatory to ensure ongoing accuracy and prevent faulty or manipulated usage. The move is intended to strengthen consumer protection, reduce billing disputes and align with global standards. “These rules make it mandatory for all gas meters…to undergo testing, verification and stamping prior to their use in trade and commerce,” the department said in a statement. It added that the step aims to ensure “accuracy, transparency, and reliability in the measurement of gas.” The rules follow extensive consultations with stakeholders, including manufacturers, testing laboratories, city gas distribution companies, and state legal metrology departments. Inputs were incorporated from the Indian Institute of Legal Metrology (IILM), Regional Reference Standard Laboratories (RRSLs), industry experts and Voluntary Consumer Organizations (VCOs). The Bureau of Indian Standards (BIS) was also consulted for technical evaluation.
Govt plans cheap gas lifeline for LNG trucks; aims to revive closed outlets
The government is considering the allocation of cheap, locally produced natural gas to trucks running on liquefied natural gas (LNG) — India’s new gas demand centre and a cleaner alternative to the country’s polluting diesel-based transport — after state-run refiner Indian Oil was forced to shut nearly all its LNG retail outlets due to high costs and a low customer turnout, industry sources told Business Standard. Indian Oil, the largest operator of LNG truck outlets, has shut five of its six outlets for lack of business, with only one in Sriperumbudur, an industrial area outside Chennai, still operational. Another seven-eight outlets are ready but have not started operations due to a shortage of LNG-fuelled trucks, a company official said. The firm hopes to restart the outlets if it can secure adequate refuelling demand, the official added. Indian Oil declined to comment.
Goldman Sachs Cuts Oil Price Outlook Once Again
Goldman Sachs has reduced its outlook for oil prices for the third time since the start of April, now expecting Brent crude to average $63 this year and $58 in 2026. The bank sees WTI at an average of $59 per barrel this year, falling to $55 in 2026, Reuters reported. The update follows one from April 4, when Goldman slashed its 2025 outlook for Brent and WTI by 5.5% and 4.3%, respectively, to $69 for a barrel of Brent crude and $66 for a barrel of West Texas Intermediate. Then, on April 6, the bank cut its 2026 outlook for the oil benchmarks. “Oil prices would likely exceed our forecast if the Administration were to reverse tariffs sharply and deliver a reassuring message to markets, consumers, and businesses,” Goldman analysts said in their note. In its latest price update, Goldman predicted weaker-than-expected oil demand growth this year, at a modest 300,000 barrels daily this year. Goldman also revised down its demand forecast for the end of 2026, slashing the figure by 900,000 bpd for the final quarter, Reuters also noted in its report. Prices could fall a lot further, too, Goldman said, in case OPEC+ decided to remove the production caps it adopted in 2023. In such a scenario prices could fall to the $40s for Brent crude, the bank’s analysts estimated, adding the global benchmark could even fall below $40 per barrel “in an extreme combined scenario.” “The risks to our reduced oil price forecast are to the downside, especially for 2026, given growing risks of recession and to a lesser extent of higher OPEC+ supply,” Godman said in one of its earlier April notes, referring to the most expected outcome of the tariff war that President Trump started in early April. However, there is a good chance the war will end before it start hitting the global economy, eliminating the biggest risks as defined by Goldman Sachs and thus reducing the danger of a more serious oil price decline.