India on July 1 joined a select league of nations globally that have taxed windfall gains accruing to oil companies from soaring energy prices.
The decision would be effective from Oct. 1, and existing conditions to sell crude oil to the government-run companies would be waived, the government said in a statement, adding that exports will not be permitted.
The move will lead to pricing and marketing freedom in the sector and boost production, Anurag Singh Thakur told reporters in New Delhi.
Will crude prices rise further as G7 countries introduce a price cap on Russian oil? Join Karunya Rao and Manisha Gupta at one to find out.
A steep market correction is also likely if the crude shoots to the unprecedented level of $140 or $150 a barrel, he said
G-7 states are eager to find a way to limit the Kremlin’s energy revenue while mitigating the impact on their own economies from steps to quickly curb their reliance on oil and gas from Russia
According to a senior government official on Thursday, India's imports of crude oil from Russia have increased more than 50 times since April and now account for 10% of all petroleum purchased internationally.
According to API data, this is the first build of over 5 million barrels since mid-February, reported Oil Price.
This year, the Indian currency has already declined 5% due to continuous dollar outflows from local markets. Foreign investors have sold equities worth around $27.22 billion, so far, this year
We expect another 10% correction in the market as India's valuation is still most expensive among emerging markets, We have a Nifty target of 14500
On June 14, President Joe Biden pulled up oil companies to boost supply and criticized them for making "unacceptable" high profit margins.
"The Russian traders have been liberal with payment routes and are accepting payments in Indian rupee and United Arab Emirates dirham," one source told Reuters.
A statement released by the Centre read: “Cumulative crude oil production during April-May 2022 was 5019.72 TMT, which is 2.86 percent and 1.79 percent higher than the target for the period and production during the corresponding period of last year, respectively."
Brent crude futures for August were down 50 cents, or 0.4%, at $120.67 a barrel as of 1357 GMT, having fallen as low as $119.40 per barrel earlier in the session.
Indian refiners bought more than 16 per cent of Russian oil imports from Russia in May, which was about 25 million barrels of oil, reported PTI.
In Mumbai, one litre of petrol costs Rs 111.35 and diesel Rs 97.28. In Chennai, petrol and diesel prices are Rs 102.63 and Rs 94.24 per litre, respectively. In Kolkata, petrol is Rs 106.03, and diesel is Rs 92.76 per litre.
The Indian basket on June 9 touched USD 121.28, matching levels seen in February/March 2012, according to data available from the oil ministry's Petroleum Planning and Analysis Cell (PPAC).
Global crude oil prices have been on the boil since Russia’s invasion of Ukraine
Russia's Rosneft is holding back on signing new crude oil deals with two Indian state refiners, three sources with knowledge of the matter said, as it has committed sales to other customers.
Oil marketing companies are passing on the excise duty cut to consumers despite losing Rs 13.08 a litre on petrol and Rs 24.09 per litre on diesel
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State processors are collectively working on finalising and securing new six-month supply contracts for Russian crude to India, people with knowledge of the companies’ procurement plans told Bloomberg.
The RBI will announce its policy on June 8. Analysts expect a 50bps hike in the repo rate to 4.9 percent this week and 25bps in August to reach the first milestone of the pre-pandemic level of 5.15 percent
The RBI's policy decision would be the major event driving trading sentiment in the equity market this week, while global cues, foreign funds movement and crude oil prices will be the other key factors to watch out for, analysts said. Markets have been witnessing a rebound recently.