New Delhi, May 3 () Jet fuel (ATF) prices have been slashed by a steep 23 per cent in line with a slump in international oil prices and it now costs about one-third of petrol and diesel whose rates continue to be frozen for the 50th day on Sunday. Aviation turbine fuel (ATF) price has been cut by Rs 6,812.62 per kilolitre, or 23.2 per cent, to Rs 22,544.75 per kl in the national capital, according to a price notification by state-owned oil marketing companies. <div type="Article" hostid="261" msid="75463339" title="Double whammy for India’s travel aggregators – bookings have stopped but refunds come out of their own pockets" mstype="2" mssubtype="0"></div> ATF, which is used as a fuel in aeroplanes, now costs less than one-third of the price of petrol used in cars and two-wheelers. A litre of petrol in Delhi comes for Rs 69.59 while jet fuel is priced at Rs 22.54 per litre. Diesel, used mostly in trucks, buses and tractors, is priced at Rs 62.29 per litre. In fact, even market priced or non-subsidised kerosene is much cheaper than petrol and diesel after its rates were cut 13.3 per cent to Rs 39,678.47 per kl (Rs 39.67 per litre), according to the notification. This the steepest cut ever and sixth reduction in ATF prices since February. Since February, jet fuel prices have been cut by almost two-thirds. ATF price in Delhi before the reduction cycle began in February was Rs 64,323.76 per kl and now costs Rs 22,544.75 per kl. Similar reduction has been effected in other metro cities as well. While the oil PSUs have regularly revised ATF prices, they have since March 16 kept petrol and diesel prices on hold ostensibly on account of extreme volatility in the international oil markets. Petrol and diesel prices were frozen soon after the government raised excise duty on the two fuels by Rs 3 per litre each to mop up gains arising from falling international rates. Oil companies, instead of passing on the excise hike to consumers, decided to adjust them against the reduction required because of the drop in international oil prices. They used the same tool and did not pass on the Re 1 per litre hike required for switching over to ultra-clean BS-VI grade fuel from April 1. Market analysts, however, said the same volatility was witnessed in ATF prices as well but that has not stopped the oil companies from passing on the cut to airlines. More importantly, no airline has been operating since mid-March in view of restrictions placed to check the spread of coronavirus, yet oil companies have continued to revise downward jet fuel prices. In fact, oil companies used to revise ATF prices on the 1st of every month but they on March 21 adopted fortnightly revisions to pass on the benefit of falling international oil prices to the airlines. Even non-PDS or market priced kerosene cost has seen rate reduction similar to ATF. It was priced at Rs 65,815.47 per kl in January. Though the government had deregulated petrol and diesel prices, rate changes have been in the past put on hold by public sector oil companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) for reasons that appear to be non-commercial. There was a 19-day price freeze on petrol and diesel ahead of the Karnataka polls in May 2018 despite international fuel prices going up by nearly USD 5 a barrel. However, no sooner were the elections over, they rapidly passed on to customers the desired increase -- over 16-straight days post-May 14, 2018, petrol price climbed by Rs 3.8 per litre and diesel by Rs 3.38. Similarly, they had stopped revising fuel prices for almost 14 days ahead of the assembly elections in Gujarat in December 2017. These companies had also imposed a freeze on petrol and diesel prices between January 16, 2017, and April 1, 2017, when assembly elections in five states -- Punjab, Goa, Uttarakhand, Uttar Pradesh and Manipur -- were held. During the 2019 general elections, they moderated the revision by not passing on all of the desired increase in rates to consumers, industry sources said. And rates began to rise a day after the final phase of polling for Lok Sabha elections ended. SEE ALSO: <a href="https://www.businessinsider.in/india/news/covid-19-effect-spicejet-to-pay-part-salaries-to-over-92-pc-employees-in-april/articleshow/75468627.cms" data-type="tilCustomLink" target="_blank">COVID-19 effect: SpiceJet to pay part salaries to over 92% employees in April</a>

Jet fuel now costs less than a third of diesel price in India

New Delhi, Jan 6 () Fitch Ratings on Monday said it expects Hindustan Petroleum Corp Ltd's (HPCL) refining margins to fall by one-third during the current fiscal due to volatility in crude prices leading to inventory losses.
Fitch affirmed HPCL's rating 'BBB-' with stable outlook, in line with the credit profile of its largest shareholder Oil and Natural Gas Corp Ltd (ONGC).
"The agency assesses HPCL's standalone credit profile at 'bb' to reflect its position as one of India's biggest oil-marketing companies, average-but-improving complexity of its refining assets and moderate financial profile," Fitch said in a statement.
HPCL, it said, is highly strategic to ONGC's vertical integration strategy, and its refining capacity, along with its large fuel retail network, increases ONGC's downstream integration, making the company India's third-largest oil-refining and fuel-marketing company.
The investment in HPCL is also ONGC's largest. ONGC in January 2018 paid Rs 36,915 crore to acquire 51 per cent stake in HPCL from the state. "We believe there is a high likelihood of exceptional support from ONGC to HPCL should the subsidiary face financial difficulties," it added.
HPCL has about one-fourth market share of India's fuel marketing, and the second-largest number of retail fuel outlets. With its refining capacity of 27 million tonnes per annum (mtpa), including 11 mtpa of capacity in its joint venture, HPCL-Mittal Energy Ltd is set to increase it to 36 mtpa within the next 12 months, and accounts for over 10 per cent of the country's refining capacity.
HPCL marketed about 19.5 million tonnes of fuel in the six months ended September 30, 2019 and refined 8.5 million tonnes. "We expect HPCL to maintain its leading position over the medium term in light of its expansion plans," it said.
Fitch expected HPCL to incur around Rs 60,000 crore in capex over FY20-FY23 to expand and upgrade its refineries, while also enhancing its retail and pipeline infrastructure.
"We expect these investments to improve HPCL's refining asset quality and business profile over the long term," it said. "However, we expect the investment plans to result in negative free cash flows over the medium term, driving up leverage."
HPCL's Mumbai refinery capacity will increase from 7.5 mtpa currently to 9.5 mtpa by end-January 2020, and that at the Visakhapatnam refinery will rise from 8.3 mtpa at present to 15 mtpa in July 2020.
"Fitch expects HPCL's standalone gross refining margins (GRM) to fall to USD 3.2 a barrel in FY20 from USD 5.0 a barrel in FY19. GRMs for HPCL's refining segment fell to USD 1.9 per barrel during 1HFY20," the statement said. "This was in line with the industry due to strong new supply from China, volatility in crude prices leading to inventory losses, and unfavourable movement in the light-heavy crude spreads."
However, Fitch expected the margins to gradually improve from 2HFY20, benefitting from strong diesel spreads, driven by new global marine-fuel regulations as HPCL has a higher share of middle distillates in its refining product slate that meet the requirements.
Its GRMs should also benefit over the medium term from the completion of modernisation and expansion of its refineries, improving their Nelson Complexity Index to 10 from an average of around 8 currently.
HPCL's standalone credit profile is one notch lower than the 'bb+' of both Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL).
IOC and BPCL are larger, have greater vertical integration and a better balance between refining and marketing volumes than HPCL, justifying the one-notch difference, although the SCPs of all three have low headroom in their financial metrics, Fitch said. ANZ BAL

Fitch says HPCL refining margins to fall in current fiscal

Boosted by its consumer-facing businesses like organised retail and telecom, Reliance Industries ended state-owned <keyword id="6356834" type="COMPANY" weightage="20" keywordseo="indian-oil-corporation">Indian Oil Corporation</keyword>'s (IOC) 10-year reign as India's largest company, topping the <keyword id="2941844" type="PERSON" weightage="20" keywordseo="Fortune-India-500">Fortune India 500</keyword> list. With a revenue of Rs 5.81 lakh crore in 2018-19, the Mukesh Ambani-led conglomerate also became the first privately-held and the only other company to become India's largest corporation apart from IOC for the first time in 10 years, Fortune India said. State-owned Oil and Natural Gas Corporation (ONGC) was ranked third, same as in 2018. It was followed by State Bank of India, Tata Motors and Bharat Petroleum Corporation Ltd (BPCL) -- all with no changes in their ranking between 2018 and 2019.
 The list does not take into account subsidiaries of companies and so ONGC's ranking does not reflect those from its recently acquired <keyword id="6374014" type="DOMAIN" weightage="20" keywordseo="hindustan-petroleum">Hindustan Petroleum</keyword> Corp Ltd (HPCL) as well as ONGC Videsh Ltd. Rajesh Exports climbed one position to be ranked 7th on the 2019 list and so did <keyword id="6357147" type="DOMAIN" weightage="20" keywordseo="tata-steel">Tata Steel</keyword>, Coal India, Tata Consultancy Services and Larsen &amp; Toubro that were ranked 8th, 9th, 10th and 11th, respectively. ICICI Bank rose two positions to be ranked 12th, followed by Hindalco Industries and <keyword id="6357149" type="COMPANY" weightage="20" keywordseo="hdfc-bank">HDFC Bank</keyword>. Vedanta Ltd slipped three positions to be ranked 18th on the 2019 list.
 Fortune India said RIL posted a 41.5 per cent rise in its revenue in the financial year 2018-19, which was 8.4 per cent more than IOC, the second-largest company on the list.
 RIL's 2018-19 revenue stood at Rs 5.81 lakh crore, while IOC posted a growth of 26.6 per cent in sales to Rs 5.36 lakh crore in the same year. RIL's profit for 2018-19 was also more than double that of IOC, at Rs 39,588 crore.
 "Over the past 10 years, the oil-to-retail conglomerate's profit has been an average three times higher than that of IOC. The highest it touched compared to IOC was up to 4.8 times, in FY15 when RIL's profit was Rs 23,566 crore and the public sector major's stood at Rs 4,912 crore," it said.
 Overall, the revenue of the Fortune India 500 companies in the 2019 list grew 9.53 per cent, while profit rose 11.8 per cent.
 A total of 57 companies dropped off the list for reasons including consolidation within the public sector banks, public sector undertakings, as well as the private sector.
 This year, the total loss posted by the 500 companies also came down, with 65 companies posting a cumulative loss of Rs 1.67 lakh crore, compared to last year's Rs 2 lakh crore racked up by 79 companies, Fortune India said.
 Public and private sector banks faced diverse fortunes in 2019. As many as 14 of 22 public sector banks reported cumulative losses of Rs 74,253 crore. In contrast, just two private sector banks posted losses (IDFC First Bank, at Rs 1,907.9 crore; and Lakshmi Vilas Bank, at Rs 894.1 crore). The total profit of 24 of private sector banks (including foreign banks and cooperative banks) was Rs 60,747 crore, a 6.16 per cent increase over 2017-18.
 Fortune India said the oil and gas sector (with eight companies) accounted for 22.3 per cent of the total revenue of the 500 companies, followed by banking with 15.88 per cent of the total.
 The banking sector, with 48 companies, is also the biggest contributor by way of the number of companies on the list. Oil and gas, however, has the highest share of profit in the 500, at 23.44 per cent. See also: <a href="https://www.businessinsider.in/business/news/ril-arm-acquires-51-78-pc-stake-in-asteria-aerospace-for-rs-23-12-cr/articleshow/72528537.cms">Reliance Industries is getting into drones with its new purchase</a>

Reliance Industries topples IOC to become India's largest company

In most of the advanced markets globally, petrol and diesel prices are revised on a daily basis. India too is following the path, implementing the procedure of daily changes in fuel prices in select towns, in sync with international rates. Indian Oil Corp (<a href="http://www.businessinsider.in/enterprise/IOC-and-RIL-rank-1stand-2nd-for-6-years-in-a-row-among-Fortune-500-India/articleshow/50311267.cms">IOC</a>), Bharat Petroleum Corp Ltd (<keyword id="44555" type="CITY" weightage="100" keywordseo="BPCL">BPCL</keyword>) and Hindustan Petroleum Corp Ltd (<keyword id="6362419" type="CITY" weightage="100" keywordseo="HPCL">HPCL</keyword>), the state-owned <a href="http://www.businessinsider.in/Indianoil-refineries-pay-700-million-to-Iran/articleshow/49338974.cms">fuel retailers</a> that own more than 95% of the nearly 58,000 <a href="http://www.businessinsider.in/transportation/cars/Now-anyone-can-have-a-petrol-pump-in-India/articleshow/48328630.cms">petrol pumps</a> in India, will be starting the exercise of daily price revision in five select cities of Puducherry, Vizag, Udaipur, Jamshedpur, and Chandigarh, taking it to other parts of the country later on. Also read: <a href="http://www.businessinsider.in/politics/Iran-stops-free-shipping-of-crude-oil-to-India/articleshow/52225246.cms">Iran stops free shipping of crude oil to India</a> Presently, these state fuel retailers revise rates on the 1st and 16th of <a href="http://www.businessinsider.in/markets/economy/state-run-oil-firms-can-now-raise-prices-of-kerosene-and-cooking-gas-every-month/articleshow/58219384.cms">every month</a>. To avoid deception, customers may verify fuel prices either by downloading the company app on their smartphones or visiting its website.

Petrol and diesel prices to be revised daily now

New Delhi, Feb 9 () Reliance Industries and its partner BP plc of UK will this month offer for sale more natural gas from its KG-D6 block to users as it prepares to put into production second wave of discoveries in the eastern offshore block. Reliance-BP is likely to offer as much as 5 million standard cubic meters per day (mmscmd) of natural gas for bidding from newer discoveries in KG-D6 in next few days, sources aware of the development said. The volume to be offered is the same as the one the company bid out in November last year. E-mails sent to Reliance and BP for comments remained unanswered. Like in the previous auction, Reliance-BP will seek bids from potential users for the 5 mmsmcd of natural gas it plans to produce from the R-Cluster Field in KG-D6 block from mid-2020. Bidders will have to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made. Sources said Reliance had in November set a floor or minimum quote of 8.4 per cent of dated Brent price -- which meant that bidders had to quote 8.4 per cent or a higher percentage for seeking gas supplies. The same formula is likely to be continued in the next auction. In the first round of auction in November 2019, Essar Steel, Adani Group and state-owned GAIL bought a majority of volumes on offer at a price of USD 5.1-5.16 per unit. Essar Steel had picked up 2.25 mmscmd in the country's first transparent and dynamic forward auction that lasted about five-and-half-hours on November 15, 2019, sources said. Gujarat State Petroleum Corp (GSPC) picked up 1.2 mmscmd while Adani Group and Mahanagar Gas Ltd bought 0.3 mmscmd, sources said, adding GAIL, acting on behalf of fertiliser companies, bought 0.3 mmscmd of gas. Hindustan Petroleum Corp Ltd (HPCL) had bought 0.35 mmscmd and 0.10 mmscmd went to Gujarat State Fertilizers &amp; Chemicals Ltd (GSFC)/Gujarat Narmada Valley Fertilizers &amp; Chemicals Ltd (GNFC), sources said. In all, 15 customers across sectors such as steel, petrochemicals, city gas, glass and ceramic got gas in the tender, they added. In the November 15 auction, bidders quoted between 8.5 and 8.6 per cent slope to corner all of the 5 mmscmd supplies available. This translates into a price between USD 5.1 per mmBtu and USD 5.16 per mmBtu rate at Brent oil price of USD 60 per barrel. Initially, Reliance had set a floor quote of 9 per cent of dated Brent price, which translated into a gas price of USD 5.4 per mmBtu at USD 60 oil price. But consumers saw this as a very high price considering that imported LNG in the spot market is available at around USD 4 per mmBtu rate currently. To pacify the consumers, Reliance lowered the floor/minimum quote to 8.4 per cent of dated Brent price. Reliance and BP are developing three sets of discoveries in KG-D6 block -- R-Cluster, Satellites, and MJ by 2022. R-Cluster will have a peak output of 12 mmscmd while Satellites, which are supposed to begin output from mid-2021, would produce a maximum of 7 mmscmd. MJ field will start production in second half of 2022 and will have a peak output of 12 mmscmd. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, the output from D-1 and D-3 ceased to produce this month. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake. ANZ ANUANU

Reliance-BP to auction more gas from KG-D6 block this month

New Delhi, Nov 17 () Essar Steel, Adani Group and state-owned GAIL have bought majority of natural gas from Reliance Industries' newer fields in the KG-D6 block at an indicative price of USD 5.04 - 5.16 per unit, industry sources said.
 Essar Steel picked up 2.25 million standard cubic meters per day or about half of the available volumes in the day long auction conducted on November 15.
 Gujarat State Petroleum Corp (GSPC) picked up 1.2 mmscmd while Adani Group, Mahanagar Gas Ltd and GAIL bought 0.3 mmscmd each, sources said.
 Hindustan Petroleum Corp Ltd (HPCL) bought 0.35 mmscmd and the remaining 0.10 mmscmd went to GSFC/GNFC.
 Reliance and its partner BP Plc of the UK had sought bids from potential users for the 5 mmsmcd of natural gas they plan to produce from the R-Cluster Field in KG-D6 block from mid-2020.
 Bidders were asked to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made.
 Sources said Reliance had set a floor or minimum quote of 8.4 per cent of dated Brent price -- which meant that bidders had to quote 8.4 per cent or a higher percentage for seeking gas supplies.
 In the November 15 auction, bidders quoted between 8.4 and 8.6 per cent slope to corner all of the 5 mmscmd supplies available. This translates into a price of between USD 5.04 per million British termal unit and USD 5.16 per mmBtu rate at Brent oil price of USD 60 per barrel.
 Sources said while bankruptcy-hit Essar bought gas to feed its steel plants, other buyers including Adani Group picked up the volumes for their city gas operations of retailing CNG to automobiles and piped cooking gas to households.
 The volumes are mostly planned for usage in western India particularly in Gujarat where the gas can be delivered through a single pipeline - East-West pipeline. The delivered price in Gujarat is likely to be around USD 6.50 per mmBtu, they said.
 Initially, Reliance had set a floor of 9 per cent of dated Brent price, which translated into a gas price of USD 5.4 per mmBtu at USD 60 oil price. But consumers saw this as a very high price considering that imported LNG in the spot market is available at around USD 4 per mmBtu rate currently.
 To pacify the consumers, Reliance lowered the floor/minimum quote to 8.4 per cent of dated Brent price.
 The company did not immediately respond to an email sent for comments.
 According to the bid document, the gas price will be subject to the ceiling price mandated by the government. The ceiling price for gas from difficult fields such as those in deep-sea currently is USD 8.43 per mmBtu.
 The government-mandated rate for other fields currently is $3.23 per mmBtu.
 Reliance and BP are developing three sets of discoveries in KG-D6 block -- R-Cluster, Satellites, and MJ by 2022.
 R-Cluster will have a peak output of 12 mmscmd while Satellites, which are supposed to begin output from mid-2021, would produce a maximum of 7 mmscmd. MJ field will start production in second half of 2022 and will have a peak output of 12 mmscmd.
 Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April 2009 and MA, the only oilfield in the block was put to production from April 2009 and MA, the only oilfield in the block was put to production in September 2008.
 While the MA field stopped producing last year, the output from D-1 and D-3 has fallen sharply from 54 million standard cubic meters per day (mmscmd) in March 2010 to 1.68 mmscmd in the July-September.
 Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production.
 Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake in the block. ANZ RSN MR
MR

Essar Steel, Adani, GAIL, HPCL buy bulk of Reliance gas

The cash-strapped government will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record increase in excise duty on <keyword id="6367091" type="UNKNOWN" weightage="20" keywordseo="petrol">petrol</keyword> and <keyword id="6356109" type="UNKNOWN" weightage="20" keywordseo="diesel">diesel</keyword>, that will help make up for revenue it lost in a slowing economy and shutting down of businesses due to <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword> lockdown. Late on Tuesday evening, the government hiked excise duty on petrol by Rs 10 per litre and that on diesel by Rs 13 a litre to mop up gains arising from international oil prices falling to a two-decade low. <div type="Article" hostid="261" msid="75563385" title="The excise duty on petrol rises by ₹10 and on diesel by ₹13 starting May 6" mstype="2" mssubtype="0"></div> This is the second hike in excise duty in less than two months and will help government garner over Rs 1.7 lakh crore in additional revenues annually at 2019-20 level of consumption, industry officials said. Considering the slump in consumption due to travel restrictions imposed by coronavirus lockdown, the gains in the remaining 11 months of the current fiscal year (April 2020 to March 2021) will be close to Rs 1.6 lakh crore, they said. Together with Rs 39,000 crore in annual revenues gained from the March 14 excise duty hike of Rs 3 per litre each on petrol and diesel, the government stands to gain as much as Rs 2 lakh crore. State-owned fuel retailing companies, <keyword id="59622" type="DOMAIN" weightage="20" keywordseo="Indian-Oil-Corp">Indian Oil Corp</keyword> (IOC), <keyword id="170673" type="COMPANY" weightage="20" keywordseo="Bharat-Petroleum-Corp-Ltd">Bharat Petroleum Corp Ltd</keyword> (BPCL) and <keyword id="6374014" type="COMPANY" weightage="20" keywordseo="hindustan-petroleum">Hindustan Petroleum</keyword> Corp Ltd (HPCL) had frozen petrol and diesel prices since March 16, as if anticipating the government move and will now set off gains they accrued from continuing drop in international oil prices against the excise duty hike. Officials said normally retail prices would have changed with any revision in taxes but like March 14, there is no change as the excise duty hike is being adjusted against the gains consumers should have got from Brent crude oil dipping to about USD 18 per barrel - the lowest since 1999. Commenting on the excise duty hike, Vikas Halan, Senior Vice President, Corporate Finance, Moody's Investors Service, said: "Government of India's increase in petrol and diesel taxes by USD 21/barrel and USD 27/ barrel respectively will result in government's tax collection increasing by about USD 21 billion, if the tax hike is maintained for full year. "This reinforces the importance of oil marketing companies to the government of India and validates the support incorporated in our credit assessment of these companies. The tax hike could result in higher working capital outflow for the oil marketing companies, which will partly offset the working capital savings from lower inventory costs." According to a notification issued by the Central Board of Indirect Taxes and Customs, special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess has been hiked by Rs 8 a litre. In case of diesel, special additional excise duty has been hiked by Rs 5 per litre and road cess has been raised by Rs 8 a litre. With this, the total incidence of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83. Petrol costs Rs 71.26 a litre in Delhi and a litre of diesel comes for Rs 69.39. Central excise duty makes up for 46 per cent of petrol and diesel price now. After considering local sales tax or VAT, the total tax incidence in the price is as high as 60 per cent. The excise tax on petrol was Rs 9.48 per litre when the Modi government took office in 2014 and that on diesel was Rs 3.56 a litre. The government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices. In all, duty on petrol rate was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government's excise mop up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15. It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But it raised excise duty by Rs 2 per litre in July 2019. It again raised excise duty on March 14 by Rs 3 per litre. In preparation for the excise duty hike, Finance Minister Nirmala Sitharaman had at the fag end of the Budget session of Parliament took the authorisation to raise excise duty on petrol and diesel by Rs 8 per litre each in future. Sitharaman through an amendment to the Finance Bill, 2020 raised the limit up to which the government can raise special excise duty on petrol and diesel to Rs 18 per litre and Rs 12 per litre, respectively. The March 14 excise duty hike included Rs 2 a litre increase in special additional excise duty and Re 1 in road and infrastructure cess. This hike took the special additional excise duty to maximum permissible limit in law - Rs 10 in case of petrol and Rs 4 in case of diesel. This, through an amendment to the Eighth Schedule of the Finance Act, was increased to Rs 18 per litre in case of petrol and Rs 12 in case of diesel. Government sources said the Centre has taken this step of increasing duty to raise some revenue in view of a tight fiscal situation. This would help in generating the resources to meet expense of coronavirus fight as well as meet other spending needs such as on infrastructure. <div type="Article" hostid="261" msid="75569073" title="Fear and loathing in shopping malls⁠ — the owners call for help in the fight for survival from the coronavirus crash" mstype="2" mssubtype="0"></div>

India to gain ₹1.6 lakh crore this fiscal from record excise duty hike on petrol, diesel

New Delhi, May 3 () Reliance Industries and its partner BP Plc of UK have pushed back the start of production from the second wave of discoveries in their eastern offshore KG-D6 block to end June because of restrictions on movement of people and material the nationwide lockdown has imposed. At current Brent oil price of around USD 26 per barrel, the gas from R-Series field in KG-D6 block will cost about USD 2.2 per million British thermal unit -- lower than even the government mandated rate of USD 2.39 for gas from state-owned ONGC fields. SEE ALSO: <a href="https://www.businessinsider.in/business/news/reliance-industries-q4-net-drops-39-pc-at-rs-6348-cr/articleshow/75474053.cms" data-type="tilCustomLink" target="_blank">Crashing crude oil cracks Reliance Industries fourth-quarter profit by nearly 40%Crashing crude oil cracks Reliance Industries fourth-quarter profit by nearly 40%</a> In an investor presentation post its fourth-quarter earnings, Reliance said it is working on three projects in the KG-D6 block, where production from older fields stopped in February this year. "First Gas from R-Cluster field expected by June 2020 subject to lifting of lockdown," it said. Gas production from R-Cluster was to start by mid-May but the coronavirus lockdown has delayed it. Reliance said it expects to achieve a peak output of around 28 million standard cubic metres per day by FY24 when all three projects are up and running. Reliance and BP are developing three sets of discoveries in KG-D6 block -- R-Cluster, Satellites, and MJ by 2022. R-Cluster will have a peak output of 12 mmscmd while Satellites, which are supposed to begin output from mid-2021, would produce a maximum of 7 mmscmd. MJ field will start production in second half of 2022 and will have a peak output of 12 mmscmd. Reliance in November last year auctioned the first set of 5 mmscmd of gas from the newer discoveries in the KG-D6 block by asking bidders to quote a price (expressed as a percentage of the dated Brent <keyword id="45185" type="ORGANIZATION" weightage="20" keywordseo="Crude-oil">crude oil</keyword> rate), supply period and the volume of gas required. Sources said Reliance had in November set a floor or minimum quote of 8.4 per cent of dated Brent price -- which meant that bidders had to quote 8.4 per cent or a higher percentage for seeking gas supplies. Considering current average Brent price of USD 26 per barrel, the gas will cost around USD 2.2 per mmBtu. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made. In the first round of auction in November 2019, Essar Steel, Adani Group and state-owned GAIL bought a majority of volumes on offer. The price at that time came to USD 5.1-5.16 per unit. But international oil rates have slumped as demand evaporated due to outbreak of coronavirus and lockdowns imposed by countries around the globe. Essar Steel had picked up 2.25 mmscmd in the country's first transparent and dynamic forward auction that lasted about five-and-half-hours on November 15, 2019, sources said. Gujarat State Petroleum Corp (GSPC) picked up 1.2 mmscmd while Adani Group and Mahanagar Gas Ltd bought 0.3 mmscmd, sources said, adding GAIL, acting on behalf of fertiliser companies, bought 0.3 mmscmd of gas. Hindustan Petroleum Corp Ltd (HPCL) had bought 0.35 mmscmd and 0.10 mmscmd went to Gujarat State Fertilizers &amp; Chemicals Ltd (GSFC)/Gujarat Narmada Valley Fertilizers &amp; Chemicals Ltd (GNFC), sources said. In all, 15 customers across sectors such as steel, petrochemicals, city gas, glass and ceramic got gas in the tender, they added. In the November 15 auction, bidders quoted between 8.5 and 8.6 per cent slope to corner all of the 5 mmscmd supplies available. This translated into a price between USD 5.1 per mmBtu and USD 5.16 per mmBtu at the then prevailing Brent oil price of USD 60 per barrel. Initially, Reliance had set a floor quote of 9 per cent of dated Brent price, which translated into a gas price of USD 5.4 per mmBtu at USD 60 oil price. But consumers saw this as a very high price considering that imported LNG in the spot market is available at around USD 4 per mmBtu rate currently. To pacify the consumers, Reliance lowered the floor/minimum quote to 8.4 per cent of dated Brent price. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, the output from D-1 and D-3 ceased in February. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/reliance-jio-profit-jumps-73-due-to-tariff-hikes/articleshow/75475445.cms" data-type="tilCustomLink" target="_blank">40% tariff hike boosts Reliance Jio’s profit by 73% in just three months ⁠— and there’s a lot more coming from the Mukesh Ambani stable</a> <a href="https://www.businessinsider.in/business/corporates/news/ril-rights-issue-ratio-pricing-and-value/articleshow/75474592.cms" data-type="tilCustomLink" target="_blank">Mukesh Ambani offers Reliance Industries shareholders 1 new share for every 15 held⁠— at a price 14% below market value</a>

RIL and BP cite COVID-19 lockdown for pushing back production from KG-D6⁠— the real reason may the price

New Delhi, Jan 16 () Indian Oil Corp (IOC), the country's biggest oil firm, will decide on bidding to buy Bharat Petroleum Corporation Ltd (BPCL) after the government lists out rules for the stake sale, its Chairman Sanjiv Singh said Thursday.
 The Cabinet Committee on Economic Affairs had on November 21, 2019 decided to sell government's entire 53.29 per cent stake in country's second-largest state refiner BPCL, but a tender for sale hasn't yet been issued.
 "The expression of interest (EoI) (for BPCL stake sale) hasn't been issued yet. We don't know the conditions. We have no information whether PSUs are allowed to bid or not," Singh told reporters here. "I cannot comment if IOC will bid or not unless we see the conditions set out in the EoI."
 He said a decision on the issue can only be taken once there is clarity on the bidding process the government intends to follow.
 Soon after the Cabinet decision, Oil Minister Dharmendra Pradhan had hinted that PSUs will be kept out of BPCL privatisation.
 "Since 2014, we have a clear vision that the government has no business to be in business," Pradhan had said on November 22, 2019. "We have examples of 2-3 sectors such as telecom and aviation where ushering in private participation has led to customers benefiting from price cuts, efficiency, and better service."
 Asked if the company has been told that PSUs will be kept out, Singh said there is no information on whether state-owned firms can bid or not.
 BPCL will give the buyer ready access to 14 per cent of India's oil refining capacity and about one-fourth of the fuel marketing infrastructure in the world's fastest-growing energy market.
 It, however, will be sold after carving out Numaligarh Refinery from its portfolio and given to a pubic sector unit. Numaligarh Refinery Ltd is also to be sold out to a PSU, possibly through a bidding process.
 Singh said he cannot comment if the company will bid for the Numaligarh Refinery unless tender conditions are revealed.
 "We don't know if Numaligarh Refinery will be sold with marketing infrastructure or without its marketing infrastructure. We have to wait for details before IOC can take any decision," he said.
 Numaligarh refinery was set up as per the Assam Peace Accord and the government has decided to keep it in the public sector.
 At the current trading price of BPCL, the government's 53.29 per cent stake is valued at around Rs 53,400 crore. On top of this, the acquirer will have to make an open offer to buy an additional 26 per cent stake from minority shareholders for about Rs 26,000 crore.
 The price of BPCL has been hammered since the November 21 CCEA decision. On that day, the government stood to gain Rs 62,000 crore from privatisation but will now get about Rs 8,000 crore less.
 The stake sales are critical for the government to meet its disinvestment target of Rs 1.05 lakh crore set for the current financial year.
 The government had allowed PSUs to bid when it sold petro retailer IBP Co Ltd in 2002. IOC had bagged the government's 33 per cent stake in IBP for Rs 1,153.68 crore or Rs 1,551 a share. 
 The other bidders for IBP were Reliance Industries, Royal Dutch Shell, Kuwait Petroleum Corporation, BPCL, and Hindustan Petroleum Corporation. The reserve price for IBP was Rs 337 crore.
 Last year, the government sold its entire stake in Hindustan Petroleum Corp Ltd (HPCL) to state-owned Oil and Natural Gas Corp (ONGC) for Rs 36,915 crore.
 BPCL operates four refineries in Mumbai, Kochi (Kerala), Bina (Madhya Pradesh) and Numaligarh (Assam) with a combined capacity of 38.3 million tonnes per annum, which is 15 per cent of India's total refining capacity of 249.4 million tonnes. 
 After removing 3 million tonnes capacity of Numaligarh refinery, the new buyer will get 35.3 million tonnes of refining capacity.
 It also owns 15,177 petrol pumps and 6,011 LPG distributor agencies in the country. Besides, it has 51 LPG (liquefied petroleum gas) bottling plants. The company distributes 21 per cent of petroleum products consumed in the country by volume as of March this year and has more than a fifth of the 250 aviation fuel stations in the country.
 The government is keen to get international energy majors such as Saudi Aramco, Total SA of France and ExxonMobil to operate in the downstream fuel marketing business so as to bring in greater competition.
 Currently, 95 per cent of retail petrol and diesel sales and near 100 per cent of cooking gas (LPG) and kerosene sales are controlled by the public sector units.
 As on March 31, BPCL reported cash and cash equivalents of around Rs 5,300 crore against Rs 10,900 crore of debt maturing over the next 15 months. ANZ RVK

IOC to decide on bidding for BPCL after govt lays out rules: Chairman

(Eds: Adding analyst comments) New Delhi, May 6 () The Union government will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record hike in excise duty on petrol and diesel that has pushed total incidence of taxation on auto fuels to 70 per cent of the price.Late on Tuesday evening, the government hiked excise duty on petrol by Rs 10 per litre and that on diesel by Rs 13 a litre to mop up gains arising from international oil prices falling to a two-decade low.Petrol price remained unchanged at Rs 71.26 a litre and diesel at Rs 69.39 as state-owned oil firms set off the excise duty hike against gains they accrued from fall in international oil rates.This is the second hike in excise duty in less than two months and will help the government garner over Rs 1.7 lakh crore in additional revenues annually at 2019-20 level of consumption, industry officials said.Considering the slump in consumption due to travel restrictions imposed by coronavirus lockdown, the gains in the remaining 11 months of the current fiscal year (April 2020 to March 2021) will be close to Rs 1.6 lakh crore, they said.Together with Rs 39,000 crore in annual revenues gained from the March 14 excise duty hike of Rs 3 per litre each on petrol and diesel, the government stands to gain as much as Rs 2 lakh crore.After the excise duty hike, taxes - both central excise and state VAT) - make up for 70 per cent of the price of petrol and diesel. A litre of petrol costs only Rs 18.28 per litre in Delhi but after including excise duty (Rs 32.98), dealer commission (Rs 3.56) and VAT (Rs 16.44) the price for consumer comes to Rs 71.26 a litre.Similarly, a litre of diesel costs only Rs 18.78 but after including excise duty (Rs 31.83), dealer commission (Rs 2.52) and VAT (Rs 16.26), it is priced at Rs 69.39 for consumers.State-owned fuel retailing companies, Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had frozen petrol and diesel prices since March 16, anticipating the government move and will now set off gains they accrued from the continuing drop in international oil prices against the excise duty hike.ICICI Securities said the excise duty hike would mean a plunge in gross auto fuel marketing margin by 64 per cent (Rs 12.1 a litre) from Rs 19 on May 5 to Rs 6.9 on May 6.Emkay Global said oil marketing companies (OMC) have continued to pass on numerous VAT rate hikes implemented on petrol and diesel by states, but as gross margins touched a high of over Rs 18/20 on Tuesday, the excise hikes are most likely to be absorbed."The overall price freeze has now crossed 45 days. OMC officials have stated unrealistic global prices to be the reason behind this, but looking at the 60 per cent estimated drop in auto-fuel consumption, the 6-7x jump in marketing margin from normative rate implies more than making up for the volume hit," it said.Officials said normally retail prices would have changed with any revision in taxes but like March 14, there is no change as the excise duty hike is being adjusted against the gains consumers should have got from Brent crude oil dipping to about USD 18 per barrel - the lowest since 1999.Commenting on the excise duty hike, Vikas Halan, Senior Vice President, Corporate Finance, Moody's Investors Service, said: "Government of India's increase in petrol and diesel taxes by USD 21/barrel and USD 27/ barrel respectively will result in government's tax collection increasing by about USD 21 billion if the tax hike is maintained for the full year."This reinforces the importance of oil marketing companies to the government of India and validates the support incorporated in our credit assessment of these companies. The tax hike could result in higher working capital outflow for the oil marketing companies, which will partly offset the working capital savings from lower inventory costs."According to a notification issued by the Central Board of Indirect Taxes and Customs, special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess has been hiked by Rs 8 a litre. In case of diesel, special additional excise duty has been hiked by Rs 5 per litre and road cess has been raised by Rs 8 a litre.With this, the total incidence of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83.Petrol costs Rs 71.26 a litre in Delhi and a litre of diesel comes for Rs 69.39.Central excise duty makes up for 46 per cent of petrol and diesel price now. After considering local sales tax or VAT, the total tax incidence in the price is as high as 60 per cent.The excise tax on petrol was Rs 9.48 per litre when the Narendra Modi government took office in 2014 and that on diesel was Rs 3.56 a litre.The government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices.In all, duty on petrol was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government's excise mop up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But, it raised excise duty by Rs 2 per litre in July 2019.It again raised excise duty on March 14 by Rs 3 per litre.Government sources said the Centre has taken this step of increasing duty to raise some revenue in view of a tight fiscal situation. This would help in generating the resources to meet the expense of coronavirus fight as well as meet other spending needs such as on infrastructure. ANZ BAL

Central govt to get Rs 1.6 lakh cr from record excise duty hike on petrol, diesel

New Delhi, Nov 21 () Oil Minister Dharmendra Pradhan on Thursday hinted that public sector firms such as Indian Oil Corporation (IOC) may not be allowed to bid for buying government stake in Bharat Petroleum Corporation Ltd (BPCL), for which a buyer may have to shell out as much as Rs 90,000 crore.
 The Cabinet Committee on Economic Affairs had on Wednesday decided to sell the government's entire stake in the country's second-largest state refiner BPCL and India's largest shipping company Shipping Corporation of India (SCI). It also approved privatisation of Container Corporation of India while also giving nod to paring stake below 51 per cent in select public sector undertakings but without losing control.
 "Since 2014, we have a clear vision that the government has no business to be in business," Pradhan told reporters here. "We have examples of 2-3 sectors such as telecom and aviation where ushering in private participation has led to customers benefiting from price cuts, efficiency, and better service. And yesterday (on Wednesday), several reformist decisions were taken."
 BPCL will give buyers ready access to 14 per cent of India's oil refining capacity and about one-fourth of the fuel marketing infrastructure in the world's fastest-growing energy market.
 It, however, will be sold after carving out Numaligarh Refinery from its portfolio and given to a pubic sector unit.
 "Numaligarh refinery was set up as per Assam Accord and it will remain a public sector unit. Assam Chief Minister had requested Prime Minister (Narendra Modi) to retain public sector character of Numaligarh Refinery and that has been accepted," he said.
 Pradhan, however, did not say if IOC or Oil India Ltd, which already has a stake in the refinery and also supplies crude oil to it, will take over the unit.
 "The details have to be worked out," he said. "Finance Minister (Nirmala Sitharaman) has stated that the privatisation of BPCL will happen this fiscal and we hope to adhere to the timeline."
 Asked if public sector units will be allowed to bid for the government's 53.29 per cent stake, he said: "Nitty gritty and details of the disinvestment process will have to be worked out but when I say the government has no business to be in business, it is indicative of possible future course of action."
 At the current trading price of BPCL, the government's 53.29 per cent stake is valued at a shade less than Rs 62,000 crore. On top of this, the acquirer will have to make an open offer to buy an additional 26 per cent stake from minority shareholders for about Rs 30,000 crore.
 Last year, the government had sold its entire stake in Hindustan Petroleum Corp Ltd (HPCL) to state-owned Oil and Natural Gas Corp (ONGC) for Rs 36,915 crore.
 Pradhan said the privatisation of BPCL was following the policy of ushering in greater competition in sectors that can sustain on their own.
 Greater private participation, like in the telecom and aviation sector, will bring about efficiencies and better service to consumers, he said.
 The CCEA had on Wednesday also approved the sale of an entire 63.75 per cent government holding in SCI and 30.8 per cent out of the government's 54.80 per cent stake in Container Corp of India (Concor).
 Besides, the government will sell its entire holding in THDC India Ltd (THDCIL) and North Eastern Electric Power Corp Ltd (NEEPCO) to state-owned power generator NTPC Ltd, the finance minister has said.
 The government holds 74.23 per cent in THDCIL and 100 per cent NEEPCO.
 Parallelly, the Cabinet had also approved reducing government stake in select PSUs such as IOC to below 51 per cent while continuing to retain management control.
 The management control will continue to be retained with the government after considering equity held by other state-owned companies in the divested firm.
 The government, currently, holds 51.5 per cent in IOC and another 25.9 per cent through state-owned Life Insurance Corp of India (LIC), and explorers ONGC and Oil India Ltd (OIL), and the government can potentially sell 26.4 per cent for about Rs 33,000 crore.
 A similar formula can also apply to ONGC and gas utility GAIL India Ltd.
 The stake sales are critical for the government to meet its disinvestment target of Rs 1.05 lakh crore set for the current financial year.
 At current prices, the government's 30.8 per cent stake in Concor is worth about Rs 10,800 crore, while stake sale in SCI will fetch just over Rs 2,000 crore.
 BPCL operates four refineries in Mumbai, Kochi (Kerala), Bina (Madhya Pradesh) and Numaligarh (Assam) with a combined capacity of 38.3 million tonnes per annum, which is 15 per cent of India's total refining capacity of 249.4 million tonnes. After removing three million tonnes capacity of the Numaligarh refinery, the new buyer will get 35.3 million tonnes of refining capacity.
 It also owns 15,177 petrol pumps and 6,011 LPG distributor agencies in the country. Besides, it has 51 LPG (liquefied petroleum gas) bottling plants. The company distributes 21 per cent of petroleum products consumed in the country by volume as of March this year and has more than a fifth of the 250 aviation fuel stations in the country.
 The government is keen to get international energy majors such as Saudi Aramco, Total SA of France and ExxonMobil to operate in the downstream fuel marketing business so as to bring in greater competition.
 Currently, 95 per cent of retail petrol and diesel sales and near 100 per cent of cooking gas (LPG) and kerosene sales are controlled by the public sector units.
 As on March 31, BPCL reported cash and cash equivalents of around Rs 5,300 crore, against Rs 10,900 crore of debt maturing over the next 15 months. ANZ HRS

IOC, other PSUs not to bid for BPCL, hints Pradhan

Union <a href="http://www.businessinsider.in/searchresult.cms?query=dharmendra+pradhan">Oil Minister Dharmendra </a><a href="http://www.businessinsider.in/searchresult.cms?query=dharmendra+pradhan">Pradha</a>n announced the government has capped subsidy payout domestic cooking gas, or <a href="http://www.businessinsider.in/searchresult.cms?query=LPG">LPG</a>, at Rs 18 per kg. 
 
The government had capped <a href="http://www.businessinsider.in/Finance-Ministry-fixes-kerosene-subsidy-at-Rs-12-per-litre/articleshow/48331153.cms">kerosene subsidy at Rs 12 per litre</a>. 
 
Kerosene through <a href="http://www.businessinsider.in/searchresult.cms?query=PDS">Public Distribution System</a> (PDS) is sold at Rs 14.96 per litre against the actual cost of Rs 29.91 and this cost difference is termed as under-recovery or revenue loss. 
 
While the government will provide Rs 12 to meet most of this, the remaining Rs 2.95 will be borne by oil producers <a href="http://www.businessinsider.in/searchresult.cms?query=ONGC">ONGC</a> and Oil India Ltd, said Pradhan. 
 
Likewise, there is an under-recovery or loss of Rs 167.18 on sale of every 14.2-kg subsidised LPG cylinder, which is sold at the current price of Rs 417.82. 
 
“At present, the state-owned fuel retailers incur under-recoveries on sale of PDS kerosene and subsidised domestic LPG only as petrol and diesel have been deregulated (market-linked) with effect from June 2010 and October 2014 respectively,” said Pradhan. 
 
He added for 2015-16, the government has approved budgetary support for PDS kerosene under-recovery at a rate of Rs 12 per litre and the remaining under-recovery will be borne by the upstream companies. 
 
Reportedly, for the first quarter of financial year 2016, the government will provide Rs 1,733 crore cash subsidy as per the new formula to Indian Oil Corp (IOC), Rs 404 crore to Bharat Petroleum Corp Ltd (BCPL) and Rs 451 crore to Hindustan Petroleum Corp Ltd (HPCL). 
 
Twelve LPG cylinders of 14.2-kg are supplied to every household at a subsidised rate of Rs 417.82 and LPG consumers get subsidy equivalent to the under-recovery directly in their bank accounts so that they can purchase a 14.2-kg bottle at market price of Rs 585. 
 
(Image: Indiatimes)

After kerosene, government caps LPG subsidy at Rs 18 per kg

<a href="http://www.businessinsider.in/searchresult.cms?query=Reliance%20industries&amp;sortorder=score">Reliance Industries</a> has managed to enter the <keyword id="3633695" type="UNKNOWN" weightage="100" keywordseo="Global-Top-10">Global Top 10</keyword> club with a ranking of 8 in the <keyword id="3633696" type="UNKNOWN" weightage="100" keywordseo="2016-Platts-Top-250-Global-Energy-Company-Rankings">2016 Platts Top 250 Global Energy Company Rankings</keyword>. <a href="http://www.businessinsider.in/searchresult.cms?query=Adani%20Power%20&amp;sortorder=score">Adani Power</a> emerged to be the fastest growing company in <keyword id="68550" type="COMPANY" weightage="100" keywordseo="asia-pacific">Asia-Pacific</keyword> region. Among the big players, <a href="http://www.businessinsider.in/searchresult.cms?query=Indian%20Oil%20Corp%20&amp;sortorder=score">Indian Oil Corp</a> jumped to 14th from 66th and HPCL which was at 133rd is now at 48th. 
 
"It was India and <a href="http://www.businessinsider.in/searchresult.cms?query=Asia-Pacific%20companies%20&amp;sortorder=score">Asia-Pacific companies</a> that maintained and built on momentum, while other regions, such as North America, showed the distress of the oil price collapse," said Robert Perkins, S&amp;P Global Platts senior writer of oil news for Europe, Middle East and Africa (EMEA) and co-author of the analysis "S&amp;P Global Platts Top 250: Price Shakeout Sparks Industry Upheaval." 
 The refining sector strengthened its standings in the 2016 roster, buoyed by improved margins. This catapulted India's <keyword id="6355199" type="CITY" weightage="100" keywordseo="Reliance-Industries">Reliance Industries</keyword>, helping it to make it global Top 10 debut. <a href="http://www.businessinsider.in/searchresult.cms?query=indian%20companies&amp;sortorder=score">Indian companies</a>, here again got a share of the limelight among the world's biggest movers - those rising by more than 50 positions from a year ago. Refiners Indian Oil Corporation and Hindustan Petroleum Corp Ltd moved to 14th from 66th and to 48thfrom 133rd respectively, lifted by access to cheaper crude. 
 
The Platts Top 250 rankings reflect the financial performance of publicly traded energy companies with assets greater than U.S.$5 billion, and are based on a combination of assvalue, revenue, profit and return on invested capital (ROIC) for the latest fiscal year (2015). 
 
Independent power producers (IPPs) and the power and natural gas utility sector turned out to be the biggest winners in the 2016 rankings. 
 <keyword id="197774" type="COMPANY" weightage="100" keywordseo="Adani-Power-Ltd">Adani Power Ltd</keyword> and IPP ranked at 250th also made its debut, with a 3-year compound growth rate of 54.9%, and also turned out to be the fastest growing energy company in Asia-Pacific and the second fastest in the world. 
 
When it came to coal demand India was also the only prominent country. Consumption increased nearly 5%. The outstanding performance of the coal industry helped the largest pure coal mining company in the world, Coal India, to achieve its place at 38th in the Top 250 ranks. 
 
Not only Asia-Pacific companies made headlines, they also managed to get 19 of those top spots among fastest growing companies, which were dominated by power companies, but they were winners on several other fronts this year 
 
South Korea's Korea Electric Power Corp (KEPCO) now stands just behind Exxon, which held at #1 for the 12th consecutive year. KEPCO was the surprise in the global Top 250 leader board as it stood at 2nd place, a rise from 41st place in 2015. 
 
Exploration and production got hit in the rankings as they came down to only 16 positions from 42 last year. About 24 U.S. and Canadian firms have dropped out of the rankings. But it was U.S.-based E&amp;P Antero Resources Corp. that topped the fastest growers with a 3-year compound growth rate of 81.1%.

You Searched For "Hindustan Petroleum Corp Ltd" and got 13 results

Jet fuel now costs less than a third of diesel price in India

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Petrol and diesel prices to be revised daily now

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Reliance-BP to auction more gas from KG-D6 block this month

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Essar Steel, Adani, GAIL, HPCL buy bulk of Reliance gas

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India to gain ₹1.6 lakh crore this fiscal from record excise duty hike on petrol, diesel

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RIL and BP cite COVID-19 lockdown for pushing back production from KG-D6⁠— the real reason may the price

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IOC to decide on bidding for BPCL after govt lays out rules: Chairman

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Central govt to get Rs 1.6 lakh cr from record excise duty hike on petrol, diesel

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IOC, other PSUs not to bid for BPCL, hints Pradhan

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After kerosene, government caps LPG subsidy at Rs 18 per kg

BI India Bureau

RIL ranked the 8th largest energy company globally

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