According to the Petroleum Planning and Analysis Group (PPAC), based on active household connections and estimated number of households, 99.8% of households in India have liquefied petroleum gas (LPG) connections. This may not be an accurate number because it is the result of dividing the number of household connections by the number of households inferred from the 2011 census data. A simple adjustment to the estimated number of households can get the required percentage of liquefied petroleum gas use. Despite this inaccuracy, subsidies for the acquisition and consumption of liquefied petroleum gas have been one of the driving forces for the increase in household use of liquefied petroleum gas for four decades.
The recent increase in LPG retail prices and the lack of direct benefit transfer (DBT) for more than a year indicate that LPG subsidies have been quietly cancelled. However, when the House of Commons raised the issue of whether subsidies for liquefied petroleum gas have been phased out in August 2021, the Minister of Petroleum and Natural Gas (MOPNG) stated that the government continues to adjust the effective price of domestic liquefied petroleum gas, and that the Subsidies depend on international product prices and government decisions. However, according to PPAC data, the last time domestic LPG issued subsidies in the form of DBT was in July 2019. Thereafter, the retail price of domestic LPG is the same as the basic price plus dealer commission and GST (goods and services tax). For example, in October 2021, the pre-tax subsidy price of LPG is 780.52 rupees/cylinder, and the retail price charged to domestic consumers is 884.5 rupees/cylinder, of which the dealer’s commission is 61.84 rupees/cylinder and the consumption tax is 42.14 rupees/cylinder.
Since April 2014, the retail price of LPG has risen from 414 Indian rupees/cylinder to 884.5 Indian rupees/cylinder in October 2021, an increase of nearly 113%. (In oil companies) is undertaken by the upstream company ONGC (Oil and Gas Committee), which reached a peak of around 50 rupees per cylinder in December 2015. The government's price support (through retail price discounts or as DBT) reached a peak of INR 435/bottle in November 2018, and dropped to around INR 140/bottle in July 2019. After July 2019, there is no record of the government issuing LPG subsidies.
Source: Calculated based on the PPAC report from 2014 to 2021
In August 2021, Lok Sabha responded to the question of why the retail price of LPG remained high despite the global price decline. The Minister of State for Oil and Gas gave an ambiguous answer without clearly stating that the subsidy for LPG has been withdrawn. Government representatives’ other responses to Lok Sabha’s LPG price issue or through the media focused on putting the blame on LPG’s international price increase. Although the international price of liquefied petroleum gas began to rise after the end of the pandemic-related blockade, the price has been falling for the past six years. From 2013-14 (fiscal year) to 2019-20, LPG international prices fell by 48%, and from 2013-14 to 2020-21, it fell by approximately 31%. The retail price of LPG rose by more than 110% between April 2014 and October 2021. The international price of LPG is important because the share of LPG imports in total LPG consumption has increased from about 37% in 2011-12 to more than 57% in 2020-21.
From 2013-14 to 2015-16, government subsidies under the burden-sharing plan fell by more than 64%, from 746.1 billion Indian rupees to 263 billion Indian rupees, and the share of oil companies dropped from 6912.8 billion Indian rupees to 12.68 billion Indian rupees. Up to more than 98%. DBT expenditures dropped from 275.7 billion Indian rupees in 2015-16 to approximately 365.8 billion Indian rupees in 2020-21, a drop of more than 86%.
Under the "Pradhan Mantri Ujjwala Yojana" (PMUY) program, the government was praised for reducing LPG subsidies for the rich and providing LPG subsidies for the poor. But both claims are controversial. In 2016, the government claimed to reduce the burden of LPG subsidies through the “abandonment” plan, but only about 5% of households voluntarily withdrew from LPG subsidies. More importantly, CAG (Comptroller and Auditor General) refuted this statement, arguing that although subsidies for the purchase of LPG cylinders did not contribute much, the decline in crude oil prices was the main factor in reducing LPG subsidies so far. CAG also pointed out that the methods adopted by the Ministry of Petroleum and Natural Gas and the oil companies are inconsistent to estimate the savings from reducing LPG subsidies.
According to many early studies, the PMUY plan did not lead to the widespread adoption of LPG as the main cooking fuel by poor families. The plan is short-term oriented and provides a one-time subsidy to voters in voting-constrained states. PMUY's expenditure dropped from INR 29.9 billion in 2015-16 to approximately INR 12.93 billion in 2019-20, a drop of more than 50%. Since the income of households that accept LPG connections under PMUY has not improved, they cannot purchase replacement gas cylinders. The phasing out of LPG subsidies makes it more difficult for PMUY recipients to purchase supplementary gas cylinders. This usually means resuming the burning of biomass. Providing LPG connectivity for poor households is the first step, but to achieve a meaningful energy transition, poor households must be able to modernize, industrialize, and urbanize so that they no longer need government subsidy programs to obtain LPG.
Public products such as energy (liquefied petroleum gas connection or electricity) are allocated as private transfers to individual citizens (voters) as a means of obtaining votes, rather than providing broad-based services. Many people can access these services at the same time. Called populism. Now it has been reshaped as the "new welfarism" and is praised for its environmental and health benefits. The basic principle is that the use of LPG reduces the use of biomass in the home, thereby eliminating the smoke that affects the lungs of women who spend time in smoky rural kitchens. If there is a real long-term concern for the environment and women’s health, it is important that energy access programs do not become a means to achieve political ends. To do this, politicians need to go beyond elections, and budget allocations go beyond the election cycle.
Source: Calculated based on the PPAC report from 2011 to 2021
Data from the Federal Power Grid Regulatory Agency POSOCO shows that India is suffering from its worst power shortage since March 2016 due to severe coal shortages in October. Data show that in the first 12 days of October, electricity supply was reduced by about 750 million kilowatt-hours (kWh) from demand, and the deficit was 1.6%, the worst in five and a half years. The October shortage has been the largest absolute value in a single month since November 2018, even if there are 19 days left in October. This month's deficit has accounted for 21.6% of this year's total deficit. The northern states such as Rajasthan, Punjab, Haryana and Uttar Pradesh, as well as the eastern states of Jharkhand and Bihar, were the most affected, with a supply gap of 2.3-14.7%. After the second wave of the coronavirus pandemic, the increase in economic activity pushed up the demand for coal, resulting in a shortage of supply, forcing power outages in northern states such as Bihar, Rajasthan and Jharkhand for up to 14 hours a day. According to the Ministry of Electricity, the capacity of power plants that have cut out due to coal shortages has dropped from 11 GW to nearly 6 GW.
The Chief Minister (CM) of Uttar Pradesh (UP) stated that his government is buying electricity from energy exchanges and other sources at a cost of up to 22 Indian rupees per unit (kWh) because it is unwilling to subject ongoing celebrations to power shortages. The impact was after a nationwide coal crisis. Private power producers and some national transmission companies seem to be profiting by selling power on exchanges. Due to coal shortages, power generation has fallen and tariffs have tripled, even though the Union Minister of Electricity requires states to pay attention to generators. , Private power companies make a fortune in power transactions. Earlier, CM had asked power officials to quickly coordinate with the center and Coal India Limited (CIL) to alleviate the crisis, which may worsen the financial situation of UP Power Corporation Limited (UPPCL)-it It has already been running a cumulative loss of 900 billion Indian rupees ($12.08 billion).
The Minister of Electricity of Kerala stated that the government will decide to implement load shedding after October 19. The minister said that Kerala is currently facing a shortage of 100 MW. He said that if the power shortage in the central pool continues, the government will have to take measures to reduce load. He said that Kerala received only 30% of its daily quota from Koondankulam. The Kerala State Electricity Board (KSEB) stated that the 15% power shortage can be controlled, but once the shortage exceeds 20%, the department will have to consider load shedding. At the same time, in Delhi, the Minister of Electricity stated that the plants of the National Thermal Power Company (NTPC) have cut the capital's electricity supply by half. The Chief Minister of Punjab has vowed not to let the power outage affect his state and said he has asked the center to ensure sufficient coal supplies.
According to data from India Ratings and Research (Ind-Ra), due to the continuous increase in imported coal prices, short-term electricity prices may remain high in the short term. It pointed out that although coal production has not increased to the expected level, most of the increased power generation will continue to be met by coal-fired power plants. This is reflected in the low inventory of power plants, so part of the increased energy demand will have to be met by imported coal. It said that in view of the expected high imported coal prices, India's short-term electricity prices may remain high.
The Ministry of Electricity has authorized power distribution companies (discoms) to conduct energy accounting to reduce power losses. In accordance with the provisions of the Energy Conservation Law of 2001, the Bureau of Energy Efficiency (BEE) has approved the Bureau of Energy Efficiency (BEE) to issue regulations in this area. Within 60 days. An independent accredited energy auditor will also conduct an annual energy audit. Both reports will be released in the public domain. The energy accounting report will provide detailed information about the power consumption of various consumers and the loss of transmission and distribution in various fields. It will identify areas of high loss and theft and take corrective measures. This measure will also help determine officials' responsibility for loss and theft. These data will enable Discom to take appropriate measures to reduce power loss. Discoms will be able to plan appropriate infrastructure upgrades and demand side management (DSM) work in an effective manner. This initiative will further promote India’s climate action to achieve our Paris Agreement goals. These regulations were issued within the scope of the Energy Conservation Act of 2001, with the overall goal of reducing inefficiency and losses in the power distribution sector, thereby realizing the economic viability of Discoms.
Soon, electricity consumers in Telangana may have to pay more because the state government is expected to approve the proposal to increase electricity tariffs at the next cabinet meeting. The Chief Minister of Telangana held a review meeting between the RTC and the power sector and asked the officials to propose higher fees. In the last seven years after the establishment of the country, the government did not revise electricity prices. Distribution companies usually submit their gross revenue requirements (ARR) to the Telangana State Electricity Regulatory Commission (TSERC) in November each year, and any interest rate hikes will take effect from the next fiscal year. However, discoms may seek permission from TSERC to allow them to raise tariffs immediately. Due to rising electricity costs and reduced electricity subsidy income from agriculture and other sectors, Telangana Southern Power Distribution Company Limited and Telangana Northern Power Distribution Company Limited both face huge income gaps.
According to the bulletin notice of the commercial taxation department, the Jharkhand government has granted retrospective power tax exemption for five years to industrial units with self-provided power plants starting in 2016, for a period of five years from the date of commissioning the power plant. Looking back at new or existing industrial units, 100% of the electricity tax has been exempted. It stated that the notice should be regarded as effective from April 1, 2016, and valid until March 31, 2021.
Sterlite Power won the Nangalbibra-Bongaigaon interstate transmission project worth 32.4 billion Indian rupees (43.5 million U.S. dollars). The project includes the construction of a 220/132 kV substation in Nangalbibra and the laying of a 130-kilometer-long 400 kV D/c transmission line connecting Bongaigaon in Assam and Nangalbibra in Meghalaya across the Brahmaputra. The project will also have a 20-kilometer 132kV D/c line connecting Hatsinghmari in Assam to Ampati in Meghalaya. Sterlite Power has a track record of successfully executing complex projects using technology and innovative solutions. The company has completed the NER-II project, an interstate transmission plan spanning the northeastern states of Assam, Arunachal Pradesh, and Tripura.
In a major welfare program for farmers, the Chief Minister of Tamil Nadu (CM) distributed 100,000 free electricity connection certificates to farmers. He further stated that since the establishment of the DMK government, the Electricity Commission has resolved 90% of the grievances.
The global energy squeeze that has caused natural gas prices to hit record highs and caused power shortages in many parts of the world is now spreading to the island nation of Singapore, which relies on natural gas for power generation. Three energy suppliers in Singapore are withdrawing from the market. According to company sources, retailers cannot pass them on to customers due to soaring wholesale energy prices, and at least two have stopped accepting new customers. Singapore’s energy regulator, the Energy Market Authority (EMA), said it is working closely with retailers facing the challenge of fluctuating electricity prices — electricity prices have risen to record highs — and that it will not interrupt customers’ electricity supply. Singapore is one of the few countries in Asia that has fully opened up its electricity retail market. Singapore’s power generation companies sell electricity at the Singapore Wholesale Electricity Market (SWEM) every half an hour, and the price is determined by the current supply and demand. Electricity retailers buy electricity in bulk from wholesale markets and compete to sell electricity to consumers. There are 22 licensed electricity retailers in Singapore, of which 12 provide electricity to residential consumers and the rest only provide electricity to businesses.
As factories in the world's largest exporting country are forced to cut production to save energy, China's energy crisis is becoming the latest impact on the global supply chain. Local governments are ordering blackouts because they are trying to avoid missing targets to reduce energy and emission intensity, while some are facing actual power shortages. Manufacturers and shippers compete to meet all kinds of demands from clothing to toys during the holiday shopping season at the end of the year, and are struggling to cope with the interruption of supply lines due to soaring raw material costs, long-term port delays and shortages of containers. Chinese manufacturers have warned that strict electricity consumption measures will lead to a sharp drop in output in economic powerhouses such as Jiangsu, Zhejiang and Guangdong - these provinces together account for nearly one-third of China's GDP - and may push up prices. . As the power crisis shifts from factory floors to people’s homes, the State Grid Corporation of China, the State Grid Corporation of China, said it will try its best to avoid power outages to meet basic residents’ needs.
Given that the three-month payment deadline has passed, the Afghan National Electric Corporation has called on a mission led by the United Nations (UN) to provide US$90 million to pay the outstanding bills of the Central Asian suppliers before the country’s power outages. Since the Taliban began taking control of Afghanistan in mid-August, they have not paid electricity bills to neighboring countries, which provide 78% of their electricity needs. This creates another problem for the new government, which is struggling to cope with the economic cash crunch, partly because the United States and other allies have frozen the country’s overseas reserves. Afghanistan usually pays Uzbekistan, Tajikistan, Turkmenistan, and Iran a total of US$20 to US$25 million each month. The unpaid bills now stand at US$62 million.
Cyprus and Egypt signed an agreement to seek links between the power transmission networks of the two countries. The Minister of Energy of Cyprus and Egypt signed a Memorandum of Understanding (MoU), which established a framework for cooperation from planning to implementation. Earlier, Greece and Egypt signed a similar agreement that laid the foundation for a submarine cable that will transmit electricity generated from renewable energy from North Africa to Europe. This is the first of its kind in the Mediterranean. infrastructure.
October 22: Indian Oil Minister Hardeep Singh Puri stated that as the country wants to cut import costs, India’s private refineries are willing to cooperate with their state-owned counterparts to bargain for better Oil import transactions. India is forming an organization to unite state-owned and private oil refineries to seek better crude oil import transactions. He said that private companies are "enthusiastic" about the plan. India is the world's third largest oil importer and consumer. About 85% of crude oil is imported, most of which come from Middle Eastern producers. Private companies including Reliance Industries (RIL), the world’s largest refinery operator, and Nayara Energy, partly owned by Russian oil giant Rosneft, control 40% of India’s 5 million barrels per day (bpd) refining capacity. In India's worst electricity crisis in years, local gasoline and gasoline prices have risen to record highs, and the country hopes to redouble its efforts and buy wisely. Driven by expensive imports, India’s trade deficit soared to a record US$22.6 billion last month, the highest level in at least 14 years. India has repeatedly asked the Organization of Petroleum Exporting Countries (OPEC) and its allies (collectively referred to as OPEC+) to increase production to reduce global oil prices.
October 21: The current diesel price in Kolkata is only 2 Indian rupees, because the fuel price in the city has risen again. The price of diesel reached 98.03 Indian rupees per liter, and the price of gasoline was 106.78 Indian rupees per liter, a record high. . Since April this year, fuel prices in the country have been hovering at record levels. Although diesel was priced at 77.41 Indian rupees at the beginning of this year and increased by 6 Indian rupees in the first four months, it has soared nearly 15 Indian rupees per liter in six months, and according to gas station operators, the price Will further climb in the city. State-owned refiners such as Indian Petroleum Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation adjust fuel rates on a daily basis based on crude oil prices in the international market and the exchange rate of rupee against the U.S. dollar. Any changes in gasoline and diesel prices will be implemented at 6 o'clock in the morning every day. Fearing that soaring fuel prices will cause the prices of several categories of essential and non-essential goods to rise, the Gasoline Pump Owners Association asked the central and national tax cuts-more than 50% of the total price we pay for a liter of fuel.
October 21: According to the company's chairman Shrikant Madhav Vaidya, the capacity of the Indian Petroleum Corporation (IOC) refinery is close to 90%. Vaidya said that as demand for most fuels exceeds or reaches pre-pandemic levels, the refinery will soon operate at 100% capacity. He pointed out that under business-as-usual conditions, approximately 30% of Indian Oil's ATF (Aviation Turbine Fuel) sales are used for these international flights. Indian Petroleum Corporation is the country's largest fuel refiner and retailer, accounting for nearly one-third of India's 5 million barrels of crude oil refining capacity per day. MK Surana, head of Hindustan Petroleum Corporation (HPCL), said that at the group level, his refinery is operating at full capacity and gasoline demand is better than before the pandemic.
October 25: Reliance Industries Ltd (RIL) is benefiting from increased production of its oil and gas assets. The higher production in the Dhirubhai-6 (D6) block located in the Krishna Godavari (KG) basin controlled by RIL-BP will coincide with the government's substantial increase in the price allowed to sell domestic natural gas. In the quarter ended September 30 of this fiscal year, RIL's share of production in the KG-D6 basin increased by 18.4% to 39.2 billion cubic feet equivalent (BCFe). From April to June 2021, it is 33.1 BCFe. From July to September 2020, the asset's output was zero. The price of natural gas produced by the asset granted under the New Exploration Licensing Policy (NELP) system is consistent with the approval formula formulated by the government in March 2016. KG-D6 assets are classified into deep water, ultra deep water and high pressure-high temperature areas (collectively referred to as difficult discovery) categories. This allows RIL and BP marketing freedom, including pricing freedom, but subject to the highest price based on the CIF price of alternative fuels. The landed price is calculated every six months and is expected to be applied in the next six months. According to the regulations of the Ministry of Oil and Gas, the price data used to calculate the upper limit price per million metric British thermal units (mmBtu) should be four consecutive quarters with a quarter lag. Under this pricing system, RIL-BP is allowed to sell natural gas produced by KG-D6 in the first half of the 2021-22 fiscal year (until September 30, 2021), with a price cap of US$3.62 per millimeter of British thermal unit. This drove RIL's oil and gas business revenue to increase by 28.3% to 16.44 billion Indian rupees in the second quarter of FY22. However, since the notified natural gas price ceiling has almost doubled to $6.13 per million British thermal units in the remaining six months of the current fiscal year, these revenues are expected to increase exponentially by the end of the year. In addition to the current production, it is expected that by the third quarter of FY23, the KG D6-MJ oil field will produce the first batch of natural gas. RIL-BP predicts that by 2023, through the comprehensive development of KG-D6, 1 BCF natural gas will be produced in stages every day. This will account for approximately 25% of India's production and 15% of demand.
October 24: India will negotiate with Qatar for the renewal of its multi-billion-dollar LNG import agreement, bargaining over the undelivered natural gas supply in the past few years. Petronet LNG Ltd and Qatar Natural Gas Company's 7.5 million tons of liquefied natural gas (LNG) import agreement will end in 2028. If there is a renewal, it must be confirmed 5 years in advance. Petronet stated that the renewal negotiations will begin next year and will be conditional on Qatar Gas's delivery of 50 LNG cargoes or ships that were not delivered in 2015 in 2022. For goods that have not been taken, it is decided that India can see the goods at any time during the remaining time of the contract that expires in 2028. If Qatar cannot meet the requirements, the delayed goods can be delivered in 2029.
October 24: In the ongoing coal crisis, the Coal Consumers Association of India (CCAI) has written to the Ministry of Coal, seeking to immediately restore coal supply to captive power plants and other steel, aluminum and paper companies. Due to insufficient inventory of several power plants, Coal India Ltd (CIL) has requested its subsidiaries not to conduct any coal electronic auctions until the situation stabilizes, except for the special forward electronic auctions in the power industry. CIL stated that due to insufficient inventories of power plants and a surge in economic activity, coal supply has temporarily given priority to the power sector. Some of India’s top metal and cement manufacturers are facing severe coal shortages because CIL’s Southeast Coal Field (SEC) stated that they will suspend all coal supply and prefer non-power sectors. CIL has been saying that it is working to increase production to alleviate this situation.
October 22: In the case of continuous shortage of dry fuel for power generation projects across the country, NTPC Co., Ltd. initiated a tender for the purchase of 1 million tons (mt) of imported coal after a time interval of more than two years. The last time the state-owned company bid for imported coal was in August 2019. According to the bidding documents on the State Power Company's portal website, the coal purchased in this bidding will be used in various factories of the company. In view of the continuing shortage of coal for thermal power plants in the country, this tender is of great significance.
October 26: Electricity Minister Nilesh Cabral stated that Goa will achieve 100% household electrification by the end of this year. He said that the proposal will be submitted to the cabinet soon, and the contractor will begin work after the cabinet approves it. The problem arises because the house cannot be connected to the grid. The electricity sector provides basic sockets for these houses through renewable energy.
October 23: The Ministry of Electricity announced new rules to maintain the economic vitality of the industry, ease the financial pressure on various stakeholders, and ensure timely recovery of power generation costs. The Ministry notified the sustainability of the power sector and the rules for the promotion of clean energy in order to fulfill India’s commitment to climate change. Investors and other stakeholders in the power industry have always been concerned about the timely recovery of costs due to legal changes, renewable energy curtailments and other related matters. It said that the rules notified by the Ministry of Electricity under the 2003 Electricity Law are in the interests of electricity consumers and stakeholders.
October 22: UP (Uttar Pradesh) Electricity Minister Srikant Sharma urges industrial consumers to waive electricity bills. The minister asked officials to ensure that online consumer services are simplified and benefit consumers. He instructs the general managers of all distribution companies to ensure that facilities are added in accordance with the growing investment and demand in the industrial zone of the state. He said that the chairperson of UPPCL should continue to supervise and review regularly. The Electrical Safety Bureau should clear about 250 outstanding cases within the next month. He said that this process will be supervised by the state government. He asked the regular patrols of the industrial and commercial districts to do this by themselves. As demand continues to increase, the necessary capacity increase process should continue. He reiterated that industrial and commercial consumers will receive advance information about the shutdown.
October 26: India ranks ninth in the world in terms of climate technology investment. The country's climate technology companies received US$1 billion in venture capital funding between 2016 and 2021. Since 2016, global venture capital (VC) investment in climate technology companies has increased, according to a report jointly prepared by London & Partners, an international trade promotion agency, and Dealroom.co, a database management company headquartered in Amsterdam. The top 10 countries for climate technology venture investment from 2016 to 2021 are the United States (US$48 billion), China (US$18.6 billion), Sweden (US$5.8 billion), the United Kingdom (US$4.3 billion), France (US$3.7 billion) ), Germany (2.7 billion U.S. dollars), Canada (1.4 billion U.S. dollars), the Netherlands (1.3 billion U.S. dollars), India (1 billion U.S. dollars) and Singapore (700 million U.S. dollars).
October 23: SJVN Chairman and Managing Director (CMD) Nand Lal Sharma met with Uttarakhand Chief Minister (CM) Pushkar Singh Dhami in Dehradun and expressed his strong investment in more hydropower projects in the state interest. Sharma said that SJVN is growing exponentially in the development of energy, and it is currently working in the fields of water, wind, solar and thermal energy. In addition, SJVN is developing projects across the country and operating in neighbouring countries such as Nepal and Bhutan. He told Dhami that the 60 MW Naitwar Mori hydropower project under construction in the Uttarkashi district of Uttarakhand is in an advanced stage and may be completed in June 2022. Request to allocate more projects from Tons and Yamuna Valley to SJVN.
October 20: United States (US) President’s special envoy on climate issues, John Kerry, stated that India’s goal of reaching 450 GW of renewable energy (RE) by 2030 is feasible because it has exceeded 100 GW of renewable energy. shut. The IPCC's sixth assessment report asserted that the contribution of greenhouse gas emissions from various activities is the scientific basis for global warming and climate change.
October 22: Affected by rising global oil prices, Indian Oil Corporation's Sri Lankan subsidiary Lanka International Oil Company (LIOC) has raised the retail price of gasoline and diesel by 5 Indian rupees per litre. Therefore, the current price of a liter of gasoline is 162 Indian rupees and the price of diesel is 116 Indian rupees. The price increase came a few days after LIOC urged the government to allow them to increase prices, although it is not obliged to require the government to determine its retail prices. Manoj Gupta, managing director of LIOC, stated that although the retail price is determined by the company itself, it is consulting the Sri Lankan government due to the prevailing conditions in the country. Facing a severe foreign exchange crisis, the Lankan government, despite raising the prices of gas and other necessities, has shelved the expected increase in fuel retail prices. Ceylon Petroleum Corporation (CPC), a competitor of LIOC, the state-owned fuel distributor, has not yet made any decision to increase fuel prices, but it also urges the government to approve price increases. Gupta has stated that the company expects gasoline prices to increase by 20 Indian rupees/liter and diesel prices to increase by 30 Indian rupees/liter. He said that the current crude oil price in the international market fluctuated between US$83-94 per barrel from about US$65 per barrel four months ago. As a result, LIOC suffered a huge loss. At the same time, as LIOC raised fuel prices, people lined up at gas stations operated by the Chinese Communist Party. However, most of them posted signs "No refueling", which the drivers claimed was due to an expected government decision to increase fuel prices. Caused. However, Energy Minister Udaya Gammanpila ruled out the possibility of rising retail fuel prices. LIOC has been operating in Sri Lanka since 2002 and has more than 200 retail gas stations, meeting approximately 12% of the country's fuel market demand. In the severe foreign exchange crisis of the island country, CPC has sought a credit line of US$500 million from India to pay for its crude oil procurement costs. Energy Minister Gamanpila earlier warned that the country’s current fuel supply can only be guaranteed until January next year.
October 21: The World Bank stated that the recent shocking increase in global oil prices may threaten economic growth and is unlikely to fall back before 2023. According to the latest commodity market outlook, the average crude oil price is expected to reach US$70 per barrel at the end of this year, 70% higher than in 2020. Oil prices have soared above US$80 a barrel in recent weeks, which is the highest point in many years as the economy reopened after the pandemic closed and shipping bottlenecks. The World Bank stated that it expects the average level to rise to 74 U.S. dollars in 2022 and then fall to 65 U.S. dollars in 2023.
October 21: South Africa is seeking cheap financing for more than 400 billion rand (US$27.6 billion) in power infrastructure as part of its plan to get rid of heavily polluting coal. Through financing mechanisms supported by wealthy countries and development financial institutions, South Africa hopes to build more than 180 billion rand of clean power generation, 120 billion rand of transmission equipment, and substation, transformer and power distribution technology. Currently, more than 80% of the country's electricity is generated by burning coal, making it the world's 12th largest carbon emitter. But last month, the government passed a more ambitious emission reduction target before the UN COP26 climate summit in November. The national power company Eskom said it is seeking up to US$12 billion (180 billion rand) from global lenders to realize the transition from coal. It stated that Eskom plans to retire 8,000 to 12,000 MW of coal in the next ten years.
October 21: China's thermal coal futures fell their limit for the third consecutive evening trading day, expanding the decline caused by Beijing's possible intervention to cool soaring prices and ease signs of widespread power tightening. China is pushing miners to increase coal production and increase imports so that power stations can rebuild inventories before the winter heating season, but analysts say the shortage may continue for at least a few months. The National Development and Reform Commission (NDRC), the national planning agency, stated that it is studying ways to intervene in reducing coal prices and will take all necessary measures to keep it within a reasonable range. Economists and analysts said that despite the recent fluctuations in coal prices, it is now expected that the rise in energy, labor and other costs will persist and be passed on to end consumers. The National Development and Reform Commission stated that it has mobilized local departments and key coal companies to conduct special surveys on coal production and distribution costs and prices as part of the study on how to intervene. The National Development and Reform Commission has stated that it will ensure that coal mines operate at full capacity, with the goal of increasing production to at least 12 million tons per day. In response to high coal prices, the China Securities Regulatory Commission requires futures exchanges to increase fees, limit trading quotas, and combat speculation. China's State Grid said that as of October 16, the coal inventory of Northeast power plants had climbed to 78% of last year's level, but it did not provide a direct amount.
October 26: The United Nations stated that the concentration of greenhouse gases hit a record high last year and that the world was “off track” in controlling temperature rise, indicating that the task facing the Glasgow climate negotiations is to avoid dangerous levels of warming. A report by the United Nations (United Nations) World Meteorological Organization (WMO) showed that despite a temporary drop in emissions during the COVID-19 lockdown, carbon dioxide levels soared to 413.2 parts per million in 2020, higher than the average level of the past decade . WMO Secretary-General Petteri Taalas stated that the current growth rate of endothermic gases will cause the temperature to rise "far above" the 2015 Paris Agreement target, which is higher than the pre-industrial average of this century 1.5 degrees Celsius. The Scottish city of Glasgow is making final contacts before the climate negotiations. This may be the world’s last best opportunity to control global warming within the 1.5-2 degrees Celsius ceiling set by the Paris Agreement. The Crown Prince of Saudi Arabia stated that the world’s largest oil exporter’s goal is to achieve “net zero” greenhouse gas emissions by 2060-10 years later than the United States, mainly produced by burning fossil fuels. He said that by 2030, it will achieve twice the emission reduction plan. It is expected that the Australian Cabinet will formally adopt the goal of achieving net zero emissions by 2050 when it meets to review the agreement reached between the parties in the Prime Minister Scott Morrison's coalition government. The ruling coalition is divided on how to deal with climate change, and the government insists that stricter targets will harm the A$2 trillion (US$1.5 trillion) economy. In Berlin, German and Canadian officials will present a plan on how rich countries can help poor countries fund reforms needed to combat climate change. So far, rich countries have failed to deliver on their 2009 pledge to provide poorer countries with US$100 billion in climate financing each year by 2020.
October 26: The Abu Dhabi government stated that the Abu Dhabi National Oil Company (Adnoc) has signed an agreement with a local utility company to provide up to 100% of nuclear and solar energy for its power grid. The supply agreement was reached after the oil producer United Arab Emirates (UAE) announced a plan to achieve net zero emissions by 2050.
October 24: China is setting ambitious clean energy goals to reduce the use of fossil fuels to less than 20% by 2060. The document comes after President Xi Jinping promised that the world's largest polluters will no longer use coal, with the goal of reaching a peak carbon emissions by 2030 and achieving carbon neutrality 30 years later. But the country has been criticized for pushing to open dozens of new coal-fired power plants. The guide also reiterated the earlier goal of reducing carbon emissions per unit of GDP by 18% from the 2020 standard by 2025.
October 23: Saudi Arabia, one of the world's largest oil producers, announced that its goal is to achieve net zero greenhouse gas emissions by 2060, and work with more than 100 countries to curb man-made climate change. The news was announced by Crown Prince Mohammed bin Salman in a brief speech at the beginning of the first ever green initiative forum in Saudi Arabia. The Kingdom announced the news more than a week before the opening of the Global COP26 Climate Conference in Glasgow, Scotland, which will attract heads of state from all over the world to try to deal with global warming and its challenges. Despite efforts to diversify income and get rid of dependence on fossil fuels, Saudi oil and natural gas exports are still the backbone of its economy. It has resisted efforts to curb its oil investment. Although the Kingdom’s goal is to reduce its own emissions, it will continue to actively send and export fossil fuels to Asia and other regions.
This is a weekly publication of the Observer Research Foundation (ORF). It covers current national and international energy information systematically classified to add value. 2021 is the eighteenth consecutive publication of the newsletter. The newsletter has been registered in the Indian Newspaper Registry under the number DELENG/2004/13485.
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