Indian OMCs will run all retail fuel stations on solar power by 2024: Oil and Gas Secretary

(Representative image: Reuters)

State run-oil marketing companies (OMCs) will run their entire network of petrol and diesel retail stations on solar power by 2024, Pankaj Jain, secretary, Ministry of Petroleum and Natural Gas said on September 9.

The government has been pushing OMCs– Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd– to run fuel stations on solar power. These companies together have around 75,000 fuel stations across India that will deploy solar panels.

So far, the OMCs have deployed solar panels to run 29,266 retail outlets, of which 3,000 outlets were added in FY22.

"We aim to 100% solarize all petrol and diesel stations in India by 2024," Jain said at an event in the capital for a signing ceremony between the government and oil and gas exploration and production companies for new blocks.

Jain added that domestic airlines in India are in discussion with oil marketing companies to come out with a new mechanism to determine aviation turbine fuel.

"Meetings are scheduled between airlines and OMCs in next few weeks," Jain said.

Domestic airlines in India are hoping to soon have a new mechanism to price ATF for domestic airlines which will bring more parity between global crude price and ATF price in India.

As part of the new proposed pricing policy, OMCs in India are expected to shift to the MOPAG (Mean of Platts Arab Gulf)-based pricing system instead of the prevailing dual pricing mechanism to determine ATF prices.

The new mechanism is also expected to help airlines predict ATF price movement based on international prices and help them be better prepared in case global crude prices rise.

Highlights from the Oil and Gas Secy's Speech

- India's Crude and Natural Gas exploration area has been increased significantly.

- Increased Crude and Natural Gas exploration will help OMCs crave out new blocks.

- Aim to have 1 mln sq km of area under crude and natural gas exploration by 2030.

- 17750 CNG stations to be set-up in India by 2030 from 4,664 currently.

- Aim to have 50 million domestic PNG supply lines by 2030, 9 mln currently.

- All petrol and diesel stations in India to run on Solar power by 2024.

- Aim to 100% solarize all petrol and diesel stations in India by 2024.

- OMCs to setup 20,000 EV charging station at petrol pumps across India by 2024.

- Aim to increase refinery capacity in India to 400 MMTPA by 2030, was 250 MMTPA in 2020.