Thursday, January 20th, 2022

Petrol-Diesel: Government will use 7.5 lakh tonnes of oil kept in reserve, less hope of reduction in prices

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Business Desk, Amar Ujala, New Delhi.

Published by: Yogesh Sahu
Updated Fri, 22 Oct 2021 01:54 AM IST

Summary

The government had bought this oil last year at a price of $ 19 per barrel, which will now make a profit by selling it for $ 80. ISPRL had set a target of selling 50 per cent of the stock this year.

petrol-diesel crude oil
– Photo : iStock

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The government will use reserve oil to avoid importing expensive crude from the international market. Indian Strategic Petroleum Reserve Limited (ISPRL) plans to sell more than half of Mangaluru oil reserve reserves to government refineries by December. Although this will reduce the price of oil, it cannot be said for sure.

ISPRL CEO HPS Ahuja said on Thursday that we have started supplying from reserves to oil marketing companies. This will be helpful in expanding leasing and creating new contracting opportunities.

3 lakh tonnes of oil from Abu Dhabi reserve in Mangaluru has already been given to the companies. By the end of the year, 4.5 lakh tonnes of reserve oil will be given. 1.5 lakh tonnes of oil has also been sold to HPCL from the reserve at Vizag.

The government had bought this oil last year at a price of $ 19 per barrel, which will now make a profit by selling it for $ 80. ISPRL had set a target of selling 50 per cent of the stock this year. Of this, 20 percent will be given directly to oil companies, while 30 percent will be given on lease to reserve oil.

Crude becomes 60 percent costlier in 2021
The price of crude oil in the international market has increased by 60 percent this year. On Thursday, Brent crude crossed $ 86 a barrel, which is the highest price since October 2018. The International Energy Agency has said that the growing energy crisis, low oil production and increasing demand are causing the prices to rise steadily around the world. Brent crude may reach $90 a barrel by December.

One month’s stock is necessary to avoid the crisis
Energy Secretary Alok Kumar has told the need to create a one-month stockpile to avoid the crisis in case of emergency. In the program of CII, he said that taking a lesson from the current coal crisis in the country, it is very important to build reserves of at least one month.

Imported coal prices continued to rise due to supply disruptions in several countries, including China, Singapore, the UK and Europe, which is a major factor in the current crisis. At the same time, it also increases the burden of imports. The secretary said, by 2030, our target is to increase the share of electricity in energy by 10 per cent to 28 per cent.

Expansion

The government will use reserve oil to avoid importing expensive crude from the international market. Indian Strategic Petroleum Reserve Limited (ISPRL) plans to sell more than half of Mangaluru oil reserve reserves to government refineries by December. Although this will reduce the price of oil, it cannot be said for sure.

ISPRL CEO HPS Ahuja said on Thursday that we have started supplying from reserves to oil marketing companies. This will be helpful in expanding leasing and creating new contracting opportunities.

3 lakh tonnes of oil from Abu Dhabi reserve in Mangaluru has already been given to the companies. By the end of the year, 4.5 lakh tonnes of reserve oil will be given. 1.5 lakh tonnes of oil has also been sold to HPCL from the reserve at Vizag.

The government had bought this oil last year at a price of $ 19 per barrel, which will now make a profit by selling it for $ 80. ISPRL had set a target of selling 50 per cent of the stock this year. Of this, 20 percent will be given directly to oil companies, while 30 percent will be given on lease to reserve oil.

Crude becomes 60 percent costlier in 2021

The price of crude oil in the international market has increased by 60 percent this year. On Thursday, Brent crude crossed $ 86 a barrel, which is the highest price since October 2018. The International Energy Agency has said that the growing energy crisis, low oil production and increasing demand are causing the prices to rise steadily around the world. Brent crude may reach $90 a barrel by December.

One month’s stock is necessary to avoid the crisis

Energy Secretary Alok Kumar has told the need to create a one-month stockpile to avoid the crisis in case of emergency. In the program of CII, he said that taking a lesson from the current coal crisis in the country, it is very important to build reserves of at least one month.

Imported coal prices continued to rise due to supply disruptions in several countries, including China, Singapore, the UK and Europe, which is a major factor in the current crisis. At the same time, it also increases the burden of imports. The secretary said, by 2030, our target is to increase the share of electricity in energy by 10 per cent to 28 per cent.

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