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  • Unchanged Retail Fuel Prices Amid Oil Volatility To Support Returns For Industry: Report | Economy News

    New Delhi: Amid the ongoing geo-political tensions, unchanged retail fuel prices amid the volatile oil prices will support overall returns for the industry, according to a report on Thursday. Operating profit will be higher than the $9-11 per barrel on average over the 10 years through fiscal 2025. This will partly support the continued substantial capital expenditure (capex) of Oil marketing companies (OMCs), said a CRISIL Ratings report.

    OMCs are projected to see operating profit drop to $12-14 per barrel in fiscal 2025 from $20 per barrel last fiscal. The moderation is expected as diesel spreads soften, discounts on Russian crude oil wane and the impact of inventory loss kicks in with crude oil price averaging $75 per barrel currently, down from $82 per barrel in the first half of the fiscal.

    According to Aditya Jhaver, Director, CRISIL Ratings, gross refining margin (GRMs) are seeing a steep correction this fiscal and are likely to average $3-5 per barrel, with diesel spreads evening out as refineries globally have ramped up production while consumption has slowed. .

    “That said, overall returns will be bolstered by marketing margins (net of operating expenses) that are likely to continue at Rs 4.5 per liter (or $9 per barrel), factoring no reduction in retail fuel prices,” he noted. OMCs earn from two businesses — refining business and marketing business.

    While oil price declined 11 per cent on-year to average $83 per barrel in fiscal 2024, the fluctuation in inventory value had a marginal impact on overall GRM (reported at $12 per barrel). Core margins were healthy because of high diesel spreads with continued geopolitical uncertainties that disrupted the global energy supply chain keeping international prices high.

    Further, the largely unchanged retail fuel rates resulted in healthy marketing margins (net of operating expenses) of Rs 4 per liter or $8 per barrel, cumulating to an overall high profit of $20 per barrel for the year, the report mentioned.

    The resulting cumulative cash accrual, estimated at Rs 52,000-54,000 crore, will partially support the Rs 90,000 crore capex planned by OMCs. “While profits could moderate on-year, the industry is expected to continue with capex, which will partly be debt funded,” said Joanne Gonsalves, Associate Director, CRISIL Ratings.

  • Sri Lanka slashes gas costs, petrol to get cheaper by 40 rupees

    Crisis-hit Sri Lanka slashed gas costs on Monday, the second reduce in as many weeks, after the World Bank warned that the economic system will shrink an unprecedented 9.2% this yr.

    Colombo, Sri Lanka,UPDATED: Oct 18, 2022 06:06 IST

    Public transport floor to a halt resulting from an absence of diesel in crisis-hit Sri Lanka earlier this yr. (File picture: Reuters)

    By Agence France-Presse: Crisis-hit Sri Lanka slashed gas costs on Monday, the second reduce in as many weeks, after the World Bank warned that the economic system will shrink an unprecedented 9.2% this yr.

    The power ministry mentioned the value of petrol will likely be diminished by 40 rupees to 370 rupees ($1.02) a litre from Monday evening after an analogous 10% discount earlier this month.

    But the value of standard petrol continues to be twice the quantity earlier than the beginning of the disaster final yr whereas diesel is three and a half instances greater than what it was in December 2021.

    Earlier this yr, motorists spent weeks to get gas, contributing to weeks of protests that compelled president Gotabaya Rajapaksa to flee the nation in July and stop.

    Also Read: Sri Lanka financial disaster: Schools closed, individuals earn a living from home to save lots of gas

    The wait on the pumps has diminished to some hours in current weeks, however gas continues to be strictly rationed due to a permanent scarcity of {dollars} wanted to pay for important imports.

    Public transport additionally floor to a halt resulting from an absence of diesel however now providers are virtually again to regular, though many fares — in widespread with hovering costs for different providers and items — have doubled.

    Official annual inflation charges are operating at near 70%.

    The newest reducing of petrol and diesel got here after the World Bank warned that the financial contraction will likely be worse than the 8.7% forecast by the Central Bank of Sri Lanka.

    The World Bank in its newest nation replace revealed final week mentioned the economic system will proceed to shrink subsequent yr too. It expects a 4.2% contraction subsequent yr.

    Also Read: As individuals stand in lengthy queues for gas, Sri Lanka introduces quota scheme to mitigate disaster

    In addition to the Covid-19 pandemic and the Ukraine struggle, Sri Lanka’s worst disaster since independence can be partly blamed on the sharp tax cuts introduced by Rajapaksa after he got here to energy in November 2019. The disaster compelled the federal government to default on its $51 billion international debt in April.

    Rajapaksa’s successor, Ranil Wickremesinghe, has overturned among the tax cuts and launched new income measures.

    The International Monetary Fund has tentatively accepted a four-year, $2.9 billion bailout. But the bundle is topic to an settlement with collectors together with China, Sri Lanka’s greatest creditor, in addition to to include inflation and sort out corruption.

  • Oil costs at seven-month low however no change in petrol, diesel costs in India

    International oil costs have hit a seven-month low however there isn’t a change in retail promoting worth of petrol and diesel in India as state-owned gasoline retailers recoup losses incurred for holding charges for a document 5 months regardless of rising value.

    International benchmark Brent crude fell under USD 90 per barrel final week for the primary time since early February as recession fears weigh on demand. It has since recovered and is buying and selling at USD 92.84 per barrel, the bottom in six months.

    Prices fell regardless of bullish developments, together with Russia maintaining the North Stream pipeline offline and producers cartel OPEC and its allies (OPEC+) reducing manufacturing.

    But this has not led to any revision in retail petrol and diesel costs in India they usually proceed to be on freeze for a record-setting 158 days.

    Responding to reporters’ questions on no change in gasoline costs, oil minister Hardeep Singh Puri had on Friday sought to hyperlink the no revision to losses state-owned gasoline retailers incurred in maintaining charges unchanged when worldwide oil costs surged to multi-year excessive.

    “When (international oil) prices were high, our (petrol and diesel) prices were already low,” he had stated. “Have we recouped all our losses?” he went on to ask.

    He nevertheless didn’t elaborate on the losses incurred on maintaining charges regular since April 6.

    The basket of crude oil that India imports averaged USD 88 per barrel on September 8. It had averaged USD 102.97 in April, earlier than rising to USD 109.51 within the following month and USD 116.01 in June. Prices began to fall in July when the Indian basket averaged USD 105.49 a barrel. It averaged USD 97.40 in August and USD 92.87 in September thus far.

    State-owned gasoline retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) haven’t exercised their proper to regulate the retail promoting worth of petrol and diesel according to the worldwide prices for over 5 months now to assist the federal government handle runaway inflation.

    At one level, they had been shedding Rs 20-25 per litre on diesel and Rs 14-18 a litre on petrol as worldwide oil costs soared. These losses have been trimmed with the autumn in oil costs.

    “There are no under-recovery (losses) on petrol now. For diesel, it will take some time to reach that level,” an official stated.

    But that is unlikely to translate into a direct discount in charges as oil corporations will likely be allowed to recoup losses they’d gathered on promoting gasoline at under value within the final 5 months, one other official stated.

    Puri had on Friday acknowledged that worldwide oil costs want to remain at USD 88 per barrel or fall under to carry some aid.

    India is 85 per cent depending on imports for assembly its oil wants and so retail pump charges are immediately depending on happenings within the world markets.

    IOC, BPCL and HPCL are speculated to revise the retail worth of petrol and diesel day by day according to value. But they froze charges for a document 137 days starting November 4, 2021, simply as states like Uttar Pradesh went to polls.

    That freeze ended on March 22 this yr and charges went up by Rs 10 per litre every in simply over a fortnight earlier than a brand new freeze got here into impact from April 7.

    Petrol at present prices Rs 96.72 a litre and diesel Rs 89.62 within the nationwide capital. This is down from Rs 105.41 a litre worth on April 6 for petrol and Rs 96.67 a litre for diesel as the federal government lower excise responsibility to chill charges.

    The Rs 10 a litre enhance, effected between March 22 and April 6, wasn’t ample to cowl the associated fee and the brand new freeze meant accumulation of extra losses, officers stated.

    Oil corporations didn’t revise charges to assist the federal government handle inflation which had already peaked to a multi-year excessive. It would have additional spiked if petrol and diesel costs had been elevated according to value.

    The freeze meant that the three retailers posted a mixed web lack of Rs 18,480 crore in June quarter.

    Petrol was deregulated in June 2010 and diesel in November 2014. Since then, the federal government doesn’t pay oil corporations any subsidy to compensate them for losses they could incur on promoting gasoline at charges under value.

    So, the oil corporations recoup losses when enter prices fall, the primary official defined.

    Russia’s February 24 invasion of Ukraine despatched shock waves via world power markets. Initial worth spikes changed into lingering worth rises as the worldwide group imposed sanctions on Russia’s key exports. Brent was at USD 90.21 per barrel earlier than the invasion and rose to a 14-year excessive of USD 140 on March 6.

    Some of the warmth has come out of oil markets in current weeks on fears of a recession snipping away demand. China has seen crude oil imports fall 9 per cent final month because the nation’s zero-Covid coverage has led to full or partial lockdowns in additional than 70 cities since late August.

  • Windfall tax not advert hoc; being charged in session with trade:FM

    Finance minister Nirmala Sitharaman on Monday mentioned windfall tax on petroleum merchandise, crude just isn’t advert hoc, however being charged in common session with the trade.

    Addressing an occasion organized on-line, the minister mentioned it’s unfair to name windfall tax as advert hoc, as a result of the tax charge and its resetting are performed in full consultations with the trade.

    “The very idea was implemented after taking the industry into full confidence,” she mentioned at a perform organized by Elara Capital.

    “When we suggested the idea we had told the industry that the tax rate will be reviewed every 15 days and we have been doing that,” Sitharaman mentioned.

    On bond inclusion in world index, the minister mentioned many issues have modified because the pandemic, particularly when it comes to inflows.

    Mostly, fund inflows haven’t been as anticipated, which after all is usually because of the pandemic, she mentioned, including “however, I expect a logical conclusion to this sooner.”

    On whether or not the federal government is planning to extend the tax-GDP ratio which is barely about 10 now, she mentioned, widening tax base is a matter that wants a whole lot of consultations and evaluation, although the growing variety of earnings tax filings provides me some clue on the potential of widening it.

    “But we want to ensure that as and when it is done it looks reasonable and tech-driven,” she mentioned.

    On the following 25 years of reforms and progress, she mentioned by the point India celebrates the primary centenary of independence, “we will have to reset lots of things so that we become a developed nation by then. And the biggest tools for such a reset are digitisation, education and building more and more infrastructure so that our hinterland doesn’t remain unconnected to the cities.”

    She additionally underlined the necessity for extra warning and concerted efforts at sustaining progress because the world is dealing with plenty of newer challenges even because it comes out of the pandemic.

     

  • Petrol diesel value in the present day: Check gas charges in your metropolis

    Petrol diesel fee for in the present day: Petrol and diesel costs remained stagnant throughout the nation for the 58th consecutive day on Tuesday, July 19, 2022.

    In Mumbai, petrol prices Rs 106.31 per litre and diesel is on the market for Rs 94.27, whereas in Delhi, petrol retails at Rs 96.72 per litre, whereas diesel stays accessible for Rs 89.62.

    In Maharashtra, petrol and diesel costs have been altered final week after the state authorities introduced a discount within the worth added tax (VAT) on each auto fuels by Rs 5 per litre on petrol and Rs 3 per litre on diesel. Following the announcement, petrol and diesel charges have been lowered the following day by Rs 5.04 per litre and Rs 3.01 per litre, respectively, in Mumbai.

    Depending on native taxes (VAT) and freight prices, petrol and diesel value varies from state to state in India. Furthermore, the central authorities imposes excise obligation on the 2 auto fuels.

    The value of petrol and diesel is generally adjusted by the oil advertising firms (OMCs) every day in accordance with the benchmark gas’s common value over the previous 15 days in the worldwide market, in addition to overseas trade charges.

    In the worldwide market, Brent crude futures for September settlement fell 43 cents to $105.84 a barrel by 0446 GMT. The contract rose 5.1 per cent on Monday, the most important proportion achieve since April 12. WTI crude futures for August supply dipped 28 cents to $102.32 a barrel. The contract climbed 5.1 per cent on Monday and the most important proportion achieve since May 11, in keeping with Reuters knowledge.

    Here’s what you pay for a litre of petrol and diesel in your metropolis on Tuesday, July 19, 2022:
    City
    Petrol (Rs/litre)
    Diesel (Rs/litre)
    New Delhi
    96.72
    89.62
    Mumbai
    106.31
    94.27
    Kolkata
    106.03
    92.76
    Chennai
    102.63
    94.24
    Bengaluru
    101.94
    87.89
    Hyderabad
    109.66
    97.82
    Patna
    107.24
    94.04
    Bhopal
    108.65
    93.90
    Jaipur
    108.48
    93.72
    Lucknow
    96.57
    89.76
    Thiruvananthapuram
    107.71
    96.52
    Source: Indian Oil Corporation

     

  • Petrol Diesel Prices Today, July 1,2022: Check gas costs in Mumbai, Delhi, Chennai and different cities

    Petrol and Diesel Rates Today in Mumbai, Delhi, Chennai, Bengaluru: Prices of petrol and diesel remained the identical throughout the nation for the fortieth straight day.

    In Mumbai, petrol stays obtainable for Rs 111.35 per litre, whereas diesel within the metropolis stays obtainable for Rs 97.28 per litre.  Simultaneously, in Delhi, a litre of petrol prices Rs 96.72, whereas that of diesel prices Rs 89.62.

    Prices for each the important thing automotive fuels have been final altered on May 22, when Union Finance Minister Nirmala Sitharaman introduced an Rs 8 discount in petrol excise obligation and a Rs 6 discount in diesel excise obligation on May 21. Following the announcement, the worth of petrol was diminished by Rs 8.69 and that of diesel was diminished by Rs 7.05 within the nationwide capital.

    Fuel and diesel costs in India differ from state to state relying on native taxation (VAT) and freight expenses. Apart from that,  the central authorities levies excise obligation on the 2 automotive fuels.

    Petrol-Diesel export obligation hiked by authorities, no impression on home gas costs

    The Centre earlier right now introduced the imposition of a Rs 6 per litre tax on exports of petrol and ATF and Rs 13 per litre on exports of diesel. Furthermore, it added a levy of Rs 23,230 per tonne to home crude oil manufacturing to offset producers’ windfall earnings from excessive oil costs overseas, in keeping with a authorities notification.

    Generally, OMCs modify petrol and diesel costs every day based mostly on the common value of benchmark gas within the worldwide market over the earlier 15-days in addition to overseas change charges.

    In the worldwide market, oil costs eased on Friday as lingering fears of a recession demand weighed on sentiment, placing the benchmarks on observe for his or her third straight weekly losses, information company Reuters reported.

    Brent crude futures have been down 20 cents (0.2%) at $108.83 a barrel by 0428 GMT, giving up earlier features of over $1; WTI crude futures for August supply slid 37 cents (0.4%) to $105.39 a barrel, additionally surrendering an early acquire of almost $1, the report stated.

    Here are the gas charges in the important thing cities of India on Friday, July 1, 2022:
    City
    Petrol (Rs/litre)
    Diesel (Rs/litre)
    New Delhi
    96.72
    89.62
    Mumbai
    111.35
    97.28
    Kolkata
    106.03
    92.76
    Chennai
    102.63
    94.24
    Bengaluru
    101.94
    87.89
    Hyderabad
    109.66
    97.82
    Patna
    107.24
    94.04
    Bhopal
    108.65
    93.90
    Jaipur
    108.48
    93.72
    Lucknow
    96.57
    89.76
    Thiruvananthapuram
    107.71
    96.52
    Source: Indian Oil Corporation

     

  • Keep up ballot promise, impact minimize on charges of petroleum merchandise, OPS tells DMK

    By PTI

    CHENNAI: Tamil Nadu’s principal Opposition AIADMK, a BJP ally, on Sunday welcomed the Centre’s transfer on slashing excise responsibility on petrol and diesel and urged the ruling DMK within the state to observe swimsuit and implement its ballot promise on lowering costs of the petroleum merchandise to learn individuals.

    AIADMK Coordinator O Panneerselvam stated the Union authorities lowering excise responsibility on petrol by a document Rs 8 per litre and that on diesel by Rs 6 will assist in cooling down the spiralling inflation and produce underneath management, the costs of important commodities and fares of autorickshaws and taxis.

    He additionally lauded the central authorities for different measures together with provision of Rs 200 subsidy to the poor who acquired cooking fuel connection underneath the Ujjwala scheme, for 12 cylinders in a yr.

    In an announcement, the previous CM, often known as OPS, urged the MK Stalin-led DMK authorities to now implement its promise concerning slashing gasoline charges, made forward of the 2021 Assembly polls and additional profit the residents.

    In reality, costs of among the greens within the state together with tomato have been above Rs 100 a kilo, he stated, including the DMK was duty-bound to meet its ballot guarantees.

    “Considering people’s welfare and aimed at controlling prices, inflation and to bring down the losses faced by state-run transport corporations (which operate diesel-run buses) besides implementing the poll promise, the chief minister (Stalin) should reduce the price of petrol (by a further) Rs 2 and Rs 4 for diesel per litre and ensure justice for people,” Panneerselvam urged.

    The DMK authorities had final yr effected VAT minimize to allow the customers a Rs 3 per litre minimize within the value of petrol.

    It had promised to slash the costs of petrol and diesel by Rs 5 and Rs 4 per litre, if elected to energy, forward of the April 2021 polls which it swept. If the DMK saved its phrase on slashing charges, the value of petrol and diesel will price round Rs 99 and Rs 89, respectively, the AIADMK chief claimed.

    If the ruling DMK failed to take action, individuals will see it as “yet another Dravidian model”, he sarcastically stated, in an obvious reference to Stalin’s oft-stated mannequin of growth taken ahead by his authorities.

    Panneerselvam additionally pointed to the Congress-ruled Rajasthan and LDF-headed Kerala saying tax cuts following the Centre’s transfer on Saturday.

  • Early birds outcomes: India Inc feels margin stress

    From cement to FMCG, the story up to now is certainly one of margin stress. The spike in the price of uncooked supplies and gasoline is consuming into income whilst firms increase costs. Indeed, the earnings season has obtained off to a considerably subdued begin, with most outcomes disappointing the Street. Revenues for a set of 73 early birds grew only a shade over 12 per cent year-on-year for the three months to March. The working revenue margin for the pattern contracted some 65 bps y-o-y, leaving the working revenue progress at 10 per cent y-o-y.

    The sharp contraction in Nestle’s gross margins of 315 foundation factors y-o-y displays the depth of the inflation in key commodities akin to edible oil and packaging supplies. Despite a fairly good enhance within the high line of 10.2 per cent y-o-y, the corporate’s working margin contracted by 200 bps y-o-y to 23.2 per cent, leaving the Ebitda (earnings earlier than curiosity, tax, depreciation and amortisation) flat. The administration noticed that key uncooked supplies had been very costly and was cautious in regards to the inflationary outlook within the close to time period.

    ACC’s working margin contracted by about 600 bps y-o-y to 14.3 per cent regardless of a rise in blended realisations per tonne of 5 per cent y-o-y as a result of working prices per tonne jumped 13 per cent y-o-y and volumes had been barely decrease. The firm’s working revenue fell 25 per cent y-o-y.

    Cement producers are elevating costs and there was a 5-6 per cent enhance in April over March. However, analysts estimate it will take a complete hike of 9-10 per cent for all the extra prices -incurred on diesel, coal and pet coke, to be handed on.

    The tech pack put up a fairly good efficiency. TCS stole the present with a file haul of orders at $11.3 billion and regardless of it being a seasonally weak quarter, Ebit margins got here in at a powerful 24.96 per cent, flat sequentially. Infosys missed estimates and is combating excessive attrition of 27 per cent; the Ebit margin got here in at 21.5 per cent, a pointy compression of 200 bps quarter-on-quarter. HDFC Bank’s working efficiency was lacklustre as working income had been up simply 5 per cent y-o-y on the again of a tepid rise in revenues; the higher web revenue progress of 23 per cent y-o-y was the results of a steep fall in provisions.

    Producers of commodities are cashing in on the multi-year worth highs. Revenues of Hindustan Zinc elevated 27 per cent y-o-y pushed up by larger zinc volumes.

  • Opposition Congress in opposition to hike in bus fares, claims anomalies in revised charges

    By PTI

    THIRUVANANTHAPURAM: The opposition Congress on Thursday claimed the latest hike in minimal fares for journey by buses, taxis and autos in Kerala slated to come back into impact from May 1, would adversely have an effect on the atypical residents who rely closely on public transport and needed the federal government to rethink the revised charges.

    Leader of Opposition (LoP) within the state Assembly V D Satheesan, who claimed that there have been a number of anomalies within the revised charges, urged the state authorities to rethink the revised charges and rectify or withdraw the anomalies in them as identified by him.

    Speaking to reporters right here, Satheesan stated the opposition had prior to now advised to the federal government to utilise 25 per cent of the round Rs 6,000 crore extra income it earned out of gasoline costs to supply gasoline subsidy to the general public transport, like state-run and personal buses, autos and taxis. This, he claimed, might have prevented a significant rise in fares as has resulted now.

    Satheesan stated the opposition was not in opposition to improve in fares because it was vital within the wake of rising gasoline costs, improve in charges of different commodities and the damaging affect of the COVID-19 pandemic on the transport and automotive trade.

    However, had gasoline subsidies been given, then a hike in fares as accomplished presently wouldn’t have been vital.

    During the press convention, he additionally alleged that sustaining 2.5 kilometers because the minimal distance for the minimal fare on buses was an anomaly within the current state of affairs. He stated that the two.5 kilometre minimal distance was introduced in throughout the pandemic to assist the stage carriage providers as a consequence of low variety of passengers and the identical ought to have been changed with the pre-COVID minimal distance of 5 kilometres.

    Satheesan claimed that there have been a number of different related anomalies within the fare revision and subsequently, the state authorities must rethink its choice. He additional claimed that Kerala was the one state within the nation the place the bus fares had been elevated in such a way and in contrast it to the fares within the neighbouring state of Tamil Nadu the place, he stated, the ticket costs had been a lot much less.

    According to a state cabinet choice on Wednesday, the minimal fares for atypical bus providers, together with metropolis, city, city-circular and city-shuttle, could be Rs 10 from the sooner Rs 8.

    Besides that, minimal bus fares of metropolis quick providers could be hiked from Rs 10 to Rs 12, for quick passenger and restricted cease quick passenger, the minimal charges could be elevated from Rs 14 to Rs 15 and for superfast from Rs 20 to Rs 22, the cabinet had determined.

    Express, tremendous categorical, tremendous air categorical, tremendous deluxe / semi sleeper bus providers, luxurious / high-tech and air conditioned (AC) bus providers, single axle providers, multi-axle providers and current low-floor AC bus providers won’t see any improve in fares, it had stated.

  • Auto, taxi unions in on strike in Delhi to demand CNG subsidy, fare hike

    By PTI

    NEW DELHI: Various auto-rickshaw, cab and taxi unions within the nationwide capital went on a strike on Monday, demanding a CNG subsidy and a fare revision within the wake of rising gas costs.

    Delhi Auto Rickshaw Sangh General Secretary Rajendra Soni stated they may also maintain a protest outdoors Chief Minister Arvind Kejriwal’s residence in Civil Lines later within the day to press their calls for.

    Commuters within the metropolis confronted difficulties in getting cabs and autos on Monday morning. Though vehicles have been out there on Ola and Uber apps, the fares have been inflated.

    Auto and cab drivers’ unions have been demanding a hike in fare and slashing of CNG costs to offset the impression of rising gas costs.

    They refused to name their strike off regardless of an announcement by the Delhi authorities to kind a committee to contemplate a fare revision in a time-bound method.

    “Our strike has started and it will continue throughout the day. CNG has become costlier and we cannot keep running our business on losses. We should either be provided a subsidy of Rs 35 per kg on CNG or fares should be hiked,” Delhi Auto Rickshaw Sangh General Secretary Rajendra Soni informed PTI.

    While most unions stated they are going to be on a one-day strike, the Sarvodaya Driver Association Delhi, which has members who drive for cab aggregators, stated will probably be an “indefinite” strike.

    There are over 90,000 autos and greater than 80,000 registered taxis complementing the general public transport system within the metropolis.