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New Delhi, Feb 12 () Former Indian Oil Corp (IOC) chairman Sarthak Behuria has joined Reliance Industries as a senior advisor and will help shape the firm's fuel retail business. Behuria, 68, was till last year with the Adani Group. Sources said Behuria will provide "strategic direction and leadership" to the new fuel retail joint venture Reliance has floated with UK's BP. Last year, BP Plc paid Rs 7,000 crore to buy a 49 per cent stake in Reliance's fuel retail business. A new joint venture of the two firms will take over 1,400 petrol pumps run by Reliance along with its aviation fuel operations at more than 30 airports across India. The partners plan to expand the fuel retailing network to as many as 5,500 fuel retail stations over the next five years. Reliance will hold 51 per cent in the new venture. The BP deal was part of billionaire Mukesh Ambani's plan to cut debt of Reliance. Alongside the BP deal, he had also (in August last year) announced plans to sell a 20 per cent stake the firm's oil refining and petrochemicals division to Saudi Aramco at an enterprise value of USD 75 billion. Reliance's share of the fuel retail venture is included in the Aramco deal. St Stephen's and IIM Ahmedabad-educated Behuria began his career in the energy industry by joining Burmah Shell in 1973. He was then absorbed in Bharat Petroleum Corporation (BPCL), where he served varied portfolios in supply and distribution, sales, industrial relations, and downstream infrastructure, before rising to the position of Chairman and Managing Director in July 2002. In 2005, Behuria was appointed as the Chairman of IOC, India's largest oil refining and marketing company. At the end of his five-year term, he was eligible for an extension of service by about one year till his superannuation age but was denied an extension by the government. Post exit from IOC, he served as Group President of KK Modi Group of Companies from 2010 to March 2016. He was Executive Director (LPG/LNG Business) in Adani Group between April 2016 and 2019. ANZ ANSANS

Sarthak Behuria joins Reliance to steer fuel retail venture

New Delhi, Jul 9 () Global energy supermajor BP plc and Reliance Industries Ltd on Thursday announced the start of their fuel retailing joint venture under the brand 'Jio-bp'. BP had last year bought 49 per cent stake in the 1,400-odd petrol pumps and 31 aviation turbine fuel (ATF) stations owned by Reliance Industries Ltd (RIL) for USD 1 billion. The joint venture, where RIL holds the remaining 51 per cent, has now commenced operations. "Following initial agreements in 2019, bp and RIL teams have worked closely over the past few months in a challenging environment to complete the transaction as planned," the companies said in a joint statement, adding the new fuels and mobility joint venture, Reliance BP Mobility Ltd (RBML), has started operations. Operating under the 'Jio-bp' brand, the joint venture aims to become a leading player in India's fuels and mobility markets. RBML has received the marketing authorisation for transportation fuels, amongst other necessary regulatory and statutory approvals. The joint venture will begin selling fuels and Castrol lubricants with immediate effect from its existing retail outlets, which will be rebranded to 'Jio-bp' in due course. "It will leverage Reliance's presence across 21 states and its millions of consumers through the Jio digital platform. bp will bring its extensive global experience in high-quality differentiated fuels, lubricants, retail, and advanced low carbon mobility solutions," the statement said. India's auto fuel retailing is dominated by public sector oil companies that own the majority of 69,392 petrol pumps in the country. State-owned IOC, BPCL and HPCL own 62,072 petrol pumps and 224 out of the 256 aviation fuel stations in the country. BP and RIL said they expect the venture to grow rapidly to help meet India's fast-growing demands for energy and mobility. "India is expected to be the fastest-growing fuel market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost six-fold over the period. RBML aims to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years," the statement said. This rapid growth will require a four-fold increase in staff employed in service stations -- growing from 20,000 to 80,000 in this period. The joint venture also aims to increase its presence from 30 to 45 airports in the coming years. RIL Chairman and Managing Director Mukesh Ambani said: "Reliance is expanding on its strong and valued partnership with bp, to establish a pan-Indian presence in retail and aviation fuels. RBML will aim to be a leader in mobility and low carbon solutions, bringing cleaner and affordable options for Indian consumers with digital and technology being our key enablers." Bernard Looney, BP chief executive officer, said India has been leading the way with innovations in digital technology, value engineering and new energy solutions. "It is a country that will require more energy for its economic growth and, as it prospers, its needs for mobility and convenience will accelerate. bp has a proud history in India spanning over a century. We are honoured to be a strategic partner with Reliance - India's most valuable company - and pleased that our partnership has grown in both substance and spirit over this past decade," he said. The new joint venture aspires to provide Indian consumers with advanced fuels with lower emissions, electric vehicle charging and other low carbon solutions over time. RBML is also committed to the decarbonisation of its own operations as well as that of its wider ecosystem, the statement said. With its many investments in India and employing around 7,500 people in the oil, gas, lubricants, and petrochemical businesses, BP is one of the largest international energy companies in India. In addition to its gas value chain, retail, aviation fuels, and mobility alliance with RIL, BP's activities include Castrol lubricants, oil and gas trading, clean energy projects through investment in Lightsource bp, IT back-office activities and a new global business services centre. BP owns 33.3 per cent stake in RIL-operated gas blocks in eastern offshore including the flagging KG-D6 block. ANZ ANZ ABM ABM

BP, Reliance to retail fuel under 'Jio-bp' brand

Mumbai, Mar 30 () As hundreds of migrant labourers are fleeing cities amidst the lockdown, national oil marketing companies are providing them succour by providing food and water as well as first aid at their fuel retail outlets. Besides, these companies are also making food packets, water and first aid facility available on major roads and national highways where petrol pumps are far and few. Truckers who are returning to their native places are also taken care of, according to officials. While BPCL and HPCL have been doing this "humane service" on their own since the announcement of the national lockdown, Indian Oil Corporation has been doing it since Saturday, when there was a nudge from the oil ministry. On Wednesday, Prime Minister Narendra Modi announced a 21-day lockdown as part of efforts to curb spreading of coronavirus infections. Giving details of how HPCL is going about helping the needy, the company's Chairman and Managing Director Mukesh Kumar Surana told that it started serving the needy people on the road and also the truckers soon after the lockdown was announced. On whether the company will reimburse the expenses to dealers, he said it was the dealers who broached the idea first and volunteered to come forward. "Of course, if some of them want reimbursement given the steeply falling fuel sales, we will definitely pay them back," he noted. Similar is the way how BPCL also started it. Apart from feeding the poor, it has been serving food and water to the stranded truck drivers and cleaners through their retail outlets across the country, a company official said. An IOC official told on Monday that a detailed note was sent to its state-level managers of retail operations on March 28. "Indian Oil has decided to offer assistance to these needy people at the retail outlets. Accordingly, it has been decided that the local authority must be contacted first by field officer/ divisional office on the initiative to serve food/ water to these people," the note said. Initially, 20 retail outlets per regional offices will carry out the services of providing food and water. IOC, which controls more than half of the oil retailing market in terms of volume as well as in terms of the number of filling stations, has asked its officers in Maharashtra to ensure that each retail outlet has adequate provision for sanitisers. There should also be provision for soaps and masks apart from some first aid medicine like Dettol and bandages, the note said. IOC has also said the dealers can maintain manual registers for keeping record of the number of people served on a daily basis so that they can claim 50 per cent reimbursement subject to a maximum of Rs 25,000 per month per outlet on a regular basis. BEN RAM

Fuel retail outlets offer food, first aid to harried migrant workers

<ul><li><keyword id="6355199" type="COMPANY" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> - <keyword id="32848" type="ORGANIZATION" weightage="20" keywordseo="BP">BP</keyword> to launch 2,000 <keyword id="4869" type="PERSON" weightage="20" keywordseo="Fuel">fuel</keyword> <keyword id="6354851" type="UNKNOWN" weightage="20" keywordseo="retail">retail</keyword> outlets across India over the next three years. </li><li>The move will set off alarm bells for India’s state-owned fuel giants, given their already-declining share of the fuel retail market. </li><li>As private companies gain a larger share of the fuel retail market in urban areas and highways, public-sector retailers will be forced to redirect their focus to rural and semi-urban areas. </li></ul>Reliance Industries, India’s largest company by market capitalisation, and global oil and gas supermajor BP are planning to launch 2,000 fuel retail outlets across India by 202, according to <a href="https://www.livemint.com/Companies/k2rv0minKHjw2lexia1x1H/Reliance-BP-to-jointly-set-up-2000-petrol-pumps-in-India.html">media reports</a> citing company insiders. A formal announcement is expected in the next few months after the specifics of the joint venture are hammered out. The news is likely to send India’s state-owned fuel giants into a tailspin. Their share of the rapidly-growing market has already been on a decline owing to the deregulation of fuel prices, which allows private companies to compete with state-owned ones. The Indian government has made a conscious decision to encourage the entry of private and foreign fuel retailers in recent years, in a bid to promote competition and attract foreign dollars. To that end, the government solicited <a href="https://www.reuters.com/article/us-global-oil/oil-little-changed-despite-saudi-pledge-to-boost-output-idUSKCN1MW02C">a joint investment </a>by Reliance and BP in the fuel retailing sector in June 2017. The move followed the two companies’ decision to develop <a href="https://www.bp.com/en/global/corporate/media/press-releases/bp-reliance-industries-to-progress-partnership.html">a series of deepwater gas fields</a> off India’s eastern coast. In October 2016, BP also secured a license to open <a href="https://in.reuters.com/article/bp-jet-fuel-india-idINKCN1260GE">3,500 fuel retail outlets</a> across India. The government’s open-market agenda is slowly paying off. Private fuel retailers are slated to hold as much as 15% of the market in 2021 compared to 1% in 2010, according to <a href="https://www.crisil.com/content/dam/crisil/our-analysis/reports/Research/CRISIL-Research-fuel-retailing-15May2017.pdf">a report</a> by CRISIL, a ratings agency. As private companies gain a larger share of the fuel retail market in urban areas and highways, public-sector retailers will be forced to leverage their distribution network and focus on rural and semi-urban areas. Reliance likely sees a joint venture with BP as a way of cementing its comeback in the sector. After making large strides in the fuel retailing sector in the early to mid-2000s, the Mukesh Ambani-owned conglomerate was forced to bow out after being unable to match the subsidised prices of state-backed fuel retailers like <keyword id="6354412" type="COMPANY" weightage="20" keywordseo="indian-oil">Indian Oil</keyword> Corp, Hindustan Petroleum and Bharat Petroleum Corp. The company’s re-entry comes on the heels of the deregulation of <keyword id="6367091" type="UNKNOWN" weightage="20" keywordseo="petrol">petrol</keyword> prices in 2010. It has since grown its market share of petrol retail from less than 1% to <a href="https://economictimes.indiatimes.com/industry/energy/oil-gas/private-fuel-retailers-nibble-away-at-indias-booming-market/articleshow/63379804.cms">nearly 7%</a>. But to be sure, state-run retailers still hold 90% of the market. BP and Reliance, along with other private retailers, will continue to be wary of government intervention with respect to prices, especially given their significant capital costs. Following weeks of pressure over high prices, for instance, India’s Finance Ministry announced a ₹2.50 per litre reduction in the prices of petrol and diesel on Oct. 4. BP’s chief executive, Robert Dudley, was quick to voice <a href="https://in.reuters.com/article/energy-india-bp/bp-criticises-price-controls-days-after-india-cuts-cost-of-fuel-idINKCN1MP1QR">his disapproval</a> of the move, saying that it did not bode well for the sector. He did, however, maintain that BP’s play in India was one for the long term, adding that BP and Reliance aimed to meet <a href="https://asia.nikkei.com/Business/Companies/BP-and-Reliance-aim-to-meet-10-of-India-s-gas-needs-by-2022">10% of India’s fuel needs</a> by 2022.

India's Reliance is teaming up with BP in a move that could send the country's state-owned fuel giants into a tailspin

<ul><li>The joint venture between <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword> Industries and BP plans to have 5,500 retail sites and 45 aviation fuel stations over the next five years.</li><li>The fuel retailing stations will branded as Jio-BP outlets. </li><li>The JV is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.</li></ul>The success of Reliance Jio's telecom venture has made it a household name in India. Now, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> wants to extend the brand presence to the fuel retailing stations too. Along with its third-quarter earnings, Reliance Industries announced that its pact with BP will be extended to form a new Indian fuels and mobility joint venture. "The venture expects to expand from RIL’s current fuel retailing network of over 1,400 retail sites and 30 aviation fuel stations across India to up to 5,500 retail sites and 45 aviation fuel stations over the next five years," the company statement said."The retail network will operate under the Jio-BP brand," it added. The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals. BP is a one-third partner in the KG-D6 oil and gas basin along with RIL and Canadian company Niko. The two companies, RIL and BP renewed their partnership last year, eight years after they first inked a pact to work together in India.

Not just mobile services, even Reliance petrol pumps will have 'Jio' brand on them

<ul><li>Mukesh Ambani-owned Reliance Industries announced a new pact with BP to sell fuel for airlines in India.</li><li>The company said that it will make about ₹7000 crore from the joint venture.</li><li>The announcement came with the company's quarterly earnings report.</li></ul>Mukesh Ambani-owned Reliance Industries announced a new pact with BP to sell fuel for airlines in India. The announcement came with the company's quarterly earnings report. "BP and RIL agreed to form a new joint venture that will include a retail service station network and aviation fuels business across India. Building on Reliance’s existing Indian fuel retailing network and an aviation fuel business, the partners expect the venture to expand rapidly to help meet the country’s fast-growing demand for energy and mobility. Reliance will get approximately ₹7,000 crore from BP’s investment in this joint venture," the statement said. 
 
 
 
 
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 The two companies formed a partnership in 2011 and decided to expand the tie-up in 2017. The two companies together operate fuel retailing outlets in the country and intend to increase the number of fuel-vending stations to 5,500. SEE ALSO: <a href="https://www.businessinsider.in/business/news/reliance-industries-retail-q2-earnings-report/articleshow/71651677.cms" data-type="tilCustomLink" target="_blank">Reliance Retail surprises with a sharp growth of 27.3% despite slowdown</a> <a href="https://www.businessinsider.in/top-highlights-from-mukesh-ambani-owned-reliance-industries-rils-quarterly-earnings/articleshow/71651084.cms" data-type="tilCustomLink" target="_blank">Reliance Industries posts a record profit even as refining and telecom verticals soften</a> <a href="https://www.businessinsider.in/business/corporates/news/reliance-jio-plans-made-more-money-but-added-fewer-subscribers/articleshow/71651933.cms" data-type="tilCustomLink" target="_blank">Reliance Jio added fewer subscribers in Q2 but made more money out of them</a>

Reliance Industries makes a new pact with BP to sell jet fuel in India

Americans will spend $700 less on gasoline this summer compared to last year,&#xa0;the&#xa0;Energy Information Administration forecasted Tuesday.Average household spending at the pump is approaching the lowest level in 11 years, it said.&#xa0;The EIA published its Summer Transportation Fuels <a href="http://www.eia.gov/forecasts/steo/report/SummerFuels.cfm">Outlook</a>.&#xa0;It also tweeted forecasts for gas and diesel prices across the country:<div><div></div></div><div><div></div></div><div><div></div></div><div><div></div></div>Prices are subject to refinery outages and other supply disruptions, the EIA noted.West Texas Intermediate crude, the US oil benchmark, turned positive for the year on Tuesday, <a href="http://www.businessinsider.com/oil-price-spike-april-7-2015-4">rallying</a> by more than 3%.&#xa0; <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/drone-footage-alberta-canada-landscape-oil-2015-3">Stunning drone video captures the beauty of Canada's oil province</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="R5cnc1dDqSlnZYSqz87BAQ5LvTY8C0b0" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Americans are going to save $700 on gas this summer

New Delhi, Dec 22 () India's biggest company Reliance Industries Ltd and UK's BP plc formalising plans to set up up petrol pumps under Jio-BP brand will impact market share of state-owned fuel retailers, Morgan Stanley said in a research report. 
 Reliance and BP last week announced further details of their retail fuel partnership, in which the British firm has taken 49 per cent stake for USD 1 billion. 
 The tie-up will see RIL's 1,400 existing pump stations being ramped up to 5,500 over five years. It also will increase the lucrative aviation fuel stations from 30 to 45. 
 "Targeted fuel station additions would be nearly equivalent to two-thirds of annual station additions by (state-owned) oil marketing companies (OMCs)," it said. "This should also help RIL sell more refined products domestically as refinery export restrictions ease." 
 Retail network will be under the Jio-BP brand and will cater to mobility solutions that may leverage BP's electric charging technologies and RIL's digital ecosystem. 
 "We have currently seen limited plans by OMCs on this front, however current regulations on the setup of electric charging infrastructure favour OMCs considering their reach." 
 RIL and BP expect to form their partnership by first half of 2020 and it will include convenience stores and Castrol lubricants. 
 Morgan Stanley said the overall increased competition in domestic fuel markets would re-rate multiples as fuel pricing gets delinked from government intervention. 
 "Also, contrary to the market's belief that retail fuel margins will weaken due to competition, we believe they can expand over the medium term towards regional averages, which are 1.5-2x higher than in India," it said. "If the RIL-BP venture hits its target for fuel stations, it would account for nearly 8 per cent of pump stations by 2025. We see an impact on OMCs' market share both in aviation and auto fuels." 
 It believed that market leader Indian Oil Corp (IOC) could be impacted the most, as seen over the past decade when its retail fuel market share declined by 10 percentage points (to below 40 per cent) in favour of private players. 
 "Bharat Petroleum Corp Ltd (BPCL), which has the highest exposure to highways, could see more aggressive pricing as RIL-BP would target these areas where throughput per outlet is higher," it said. "We see limited impact to HPCL considering its higher exposure to cities, which are normally tougher for new players to enter considering long-term leases even for dealer-operated stations." 
 However, both BPCL and HPCL have tried to protect market share in the past and they are seen keeping that stable going ahead. 
 In August, RIL had said BP will pay about Rs 7,000 crore for acquiring 49 per cent stake in its existing petrol pumps and aviation turbine fuel network. RIL will hold the remaining 51 per cent interest. 
 This is the third joint venture between Reliance and BP since 2011. 
 BP had in 2011 bought 30 per cent stake in 21 oil and gas exploration and production blocks of Reliance for USD 7.2 billion. At that time, another 50:50 joint venture, India Gas Solutions, was set up for sourcing and marketing gas in India. 
 The country currently has 66,408 petrol pumps, with public sector retailers owning 59,831. PSU retailers have plans to double this network and have already starting appointing dealers. 
 Russia's Rosneft-backed Nayara Energy, formerly Essar Oil, has 5,453 petrol pumps and has plans to scale them up to more than 7,000 in two-three years. 
 Royal Dutch Shell has 167 outlets and is slated to add 150-200 more petrol pumps. 
 BP had in 2016 received a licence from the government to set up 3,500 petrol pumps in India but it did not move on that authorisation. 
 French energy giant Total SA too is keen on entering the Indian retail market and has tied up with Adani Group for the same. ANZ ABM
ABM

Reliance-BP petrol pumps to dent PSU market share: Morgan Stanley

After reporting <keyword id="21767878" type="General" weightage="20" keywordseo="record-profits" source="keywords">record profits</keyword>, state-owned <keyword id="20459282" type="General" weightage="100" keywordseo="fuel-retailers" source="keywords">fuel retailers</keyword> <keyword id="19908045" type="General" weightage="20" keywordseo="Indian-Oil-Corporation" source="keywords" meta.keywordsubtype="org" meta.entityname="Indian Oil Corporation" meta.hostid="153" meta.entityid="Indian Oil Corporation">Indian Oil Corporation</keyword> (<keyword id="6354733" type="General" weightage="20" keywordseo="IOC" source="Orion">IOC</keyword>), <keyword id="19908646" type="General" weightage="20" keywordseo="BPCL" source="keywords" meta.keywordsubtype="org" meta.entityname="BPCL" meta.hostid="153" meta.entityid="BPCL">BPCL</keyword> and <keyword id="20052221" type="General" weightage="20" keywordseo="HPCL" source="keywords" meta.keywordsubtype="org" meta.entityname="HPCL" meta.hostid="153" meta.entityid="HPCL">HPCL</keyword> posted up to 90 per cent slump in their June quarter earnings as margins fell and they booked under-recovery on the sale of domestic cooking gas LPG at government-controlled rates. IOC, the nation's largest oil firm, reported 81 per cent drop in standalone net profit in April-June - the first quarter of current 2024-25 fiscal year - to Rs 2,643.18 crore as opposed to a profit of Rs 13,750.44 crore a year back, according to a company filing. Net profit also declined sequentially, when compared to an earning of Rs 11,570.82 crore in March quarter. Hindustan Petroleum Corporation Ltd (HPCL) posted 90 per cent drop in profit to Rs 633.94 crore as compared to an earning of Rs 6,765.50 crore in April-June 2023 and Rs 2,709.31 crore in the preceding March quarter. Bharat Petroleum Corporation Ltd (BPCL) net profit dropped to Rs 2,841.55 crore in April-June from Rs 10,644.30 crore a year back and Rs 4,789.57 crore in January-March, its filing showed. The three fuel retailers made extraordinary gains from holding petrol and diesel prices despite a drop in cost. The price freeze was justified in the name of recovering losses they had suffered in the previous year when they did not raise retail prices despite a surge in cost. The gains arising from the price freeze were eroded with petrol and diesel prices being cut by Rs 2 per litre each just before general elections and a fall in refining margins. Also, the three had uncompensated <keyword id="20866844" type="General" weightage="20" keywordseo="LPG-subsidy" source="keywords">LPG subsidy</keyword> - IOC booking under-recovery of Rs 5,156.23 crore in April-June, BPCL Rs 2,015.10 crore and HPCL Rs 2,443.71 crore, according to the filings. As per an order of the oil ministry, when market determined price (MDP) of LPG cylinders is less than its effective cost to customer (ECC), oil marketing companies (OMCs) have to retain the difference in a separate buffer account for future adjustment. However, as on June 30, 2024, the three firms had a net negative buffer as the retail selling price was less than MDP. The three retailers IOC, BPCL and HPCL had reported record profits totalling about Rs 81,000 crore in FY24 (2023-24), which was far more than their annual earnings of Rs 39,356 crore in pre-oil crisis years. This is because they resisted calls to revert to daily price revision and pass on softening in rates to consumers on grounds that prices continue to be extremely volatile - rising on one day and falling on the other - and that they needed to recoup losses incurred in the year, when they kept rates lower than cost. IOC in 2023-24 posted a standalone net profit of Rs 39,618.84 crore compared to Rs 8,241.82 crore in 2022-23. While the company could argue that FY23 was impacted by the <keyword id="21626914" type="General" weightage="20" keywordseo="oil-crisis" source="keywords">oil crisis</keyword>, the FY24 earnings are higher than even the pre-crisis years - Rs 24,184 crore net profit in 2021-22 and Rs 21,836 crore in 2020-21. BPCL posted a net profit of Rs 26,673.50 crore in FY24, higher than Rs 1,870.10 crore earnings in 2022-23 and Rs 8,788.73 crore in FY22. HPCL's 2023-24 profit of Rs 14,693.83 crore is compared with a Rs 8,974.03 crore loss in FY23 and a profit of Rs 6,382.63 crore in 2021-22, according to the filings. The losses in FY23 had led to the finance minister announcing Rs 30,000 crore equity infusion in the three firms. Mid-way through the year, that support was halved to Rs 15,000 crore. The support was to happen by way of equity infusion via a rights issue. But after the record profits of 2023-24, the equity infusion plan has now been scrapped. Finance Minister Nirmala Sitharaman had on February 1 last year, while presenting the annual Budget for the 2023-24 fiscal (April 2023 to March 2024), announced an equity infusion of Rs 30,000 crore in IOC, BPCL and HPCL to support the three state-owned firm's energy transition plans. In the interim budget that the finance minister presented in February this year ahead of the general elections, the capital support to the three oil companies was halved to Rs 15,000 crore. In the full budget for 2024-25, both plans have been scrapped. While other state-owned oil companies like Oil and Natural Gas Corporation (ONGC) and GAIL (India) Ltd too have lined up billions of dollars of investment to achieve net-zero carbon emissions, the equity support was limited to the three fuel retailers, which had suffered huge losses in 2022 when they held retail petrol, diesel and cooking gas (LPG) prices despite a spike in raw material (crude oil) prices, following Russia's invasion of Ukraine. The board of IOC and BPCL had last year approved rights issues to raise to Rs 22,000 crore and Rs 18,000 crore, respectively. The government was to participate in the rights issue. The three companies, which control roughly 90 per cent of India's fuel market, 'voluntarily' have not changed petrol, diesel and cooking gas (LPG) prices, resulting in losses when input costs were higher and profits when raw material prices were lower. They posted a combined net loss of Rs 21,201.18 crore during April-September 2022 despite accounting for Rs 22,000 crore announced but not paid LPG subsidy for the previous two years. Subsequent softening of international prices and government giving out LPG subsidies helped IOC and BPCL post annualised profit for 2022-23, but HPCL was in the red. In FY24, things changed dramatically, and the three firms posted record earnings.

After record profits, state-owned fuel retailers Indian Oil, BPCL and HPCL see profit slump in Q1

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

<keyword id="59783" type="General" weightage="20" keywordseo="jet-fuel" source="Orion">Jet fuel</keyword> (ATF) price was on Thursday reduced by 2.3 per cent, reflecting softening international oil prices but <keyword id="6367091" type="General" weightage="80" keywordseo="petrol" source="Orion">petrol</keyword> and diesel rates remained on freeze for a record eighth month in running. <keyword id="31907" type="General" weightage="20" keywordseo="aviation" source="Orion">Aviation</keyword> Turbine Fuel (ATF) price was cut by Rs 2,775 per kilolitre, or 2.3 per cent, to Rs 1,17,587.64 per kl in the national capital, according to a price notification of state-owned fuel retailers. The rate reduction, which will provide relief to airlines for whom fuel makes for almost 40 per cent of the operating cost, comes on the back of a Rs 4,842.37 per kl, or 4.19 per cent, reduction last month. ATF price is revised on the 1st of every month based on the average rate of international benchmark and foreign exchange rates. Petrol and diesel prices, however, continued to remain on freeze for a record eighth month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62. State-owned fuel retailers are supposed to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international <keyword id="61430" type="General" weightage="20" keywordseo="fuel-prices" source="Orion">fuel prices</keyword> but they haven't done that since April 6. Prices were last changed on May 22 when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices. Also, after seven reductions, the price of commercial LPG, whose rate too is revised on the 1st of every month, remained unchanged on Thursday. A 19-kg commercial LPG cylinder, which is used by hotels, restaurants and other business establishments, continues to cost Rs 1,744 in the national capital. In seven cuts, rates had previously come down by Rs 610 per 19-kg cylinder. However, rate of LPG used in household kitchens remained unchanged at Rs 1,053 per 14.2-kg cylinder. Rates differ from state to state depending on the incidence of local taxes.

ATF price slashed by 2.3 pc to Rs 1.17 lakh per kilolitre

Instead of a fortnightly revision, the state-run oil companies are planning to review<a href="http://www.businessinsider.in/searchresult.cms?query=fuel&amp;sortorder=effectivedate"> fuel </a>rates every day, in a bid to be on the same page as many of the advanced markets. 
 
Executives of state-run oil companies such as<a href="http://www.businessinsider.in/searchresult.cms?query=indian+oil+corporation&amp;sortorder=effectivedate"> Indian Oil Corp</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=bharat+petroleum&amp;sortorder=effectivedate">Bharat Petroleum</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=hindustan+petroleum&amp;sortorder=effectivedate">Hindustan Petroleum</a>, have discussed this strategy with Oil Minister Dharmendra Pradhan. 
 
"The idea of daily fuel pricing has been there for sometime. But now we have the technology to implement it. So we will do it," a top executive told ET. 
 Changing <keyword id="61430" type="UNKNOWN" weightage="20" keywordseo="fuel-prices">fuel prices</keyword> on every day basis won’t be a hassle, thanks to <a href="http://www.businessinsider.in/searchresult.cms?query=automation&amp;sortorder=effectivedate">automation </a>at most of the filling stations. 
 
Companies can inform about change of prices through online platforms. 
 
"Daily price revision is about introducing international standards in the Indian fuel retail market. It helps both customers as well as dealers in managing their purchase,” said the executive mentioned above. 
 
If you’re worried about drastic changes, don’t fret as the prices would change just by a few paise. 
 
India lifted price control on diesel in 2014 and on petrol in 2010, which allowed state companies to charge market prices, and encouraged private companies to reenter the fuel retailing business. 
 
At present, state companies review prices at the end of every fortnight and raise or reduce them depending on the prevailing international prices.

Petrol, diesel prices may change every day. Here’s why

New Delhi, Jul 5 () Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) plans to increase its network of aviation fuel stations by 50 per cent as it looks to capture greater market share in the business currently controlled by public sector oil retailing firms. In its latest annual report, RIL said the double-digit growth observed over 52 consecutive months might have been stalled due to the COVID-19 pandemic, but India continues to be one of the fastest growing aviation markets in the world for the fifth consecutive year. RIL, which operates the world's largest single location oil refining complex, plans to capture this opportunity through increased presence at airports to refuel airplanes. Air-passenger traffic in India rose 9 per cent even in February after the Indian carriers recouped to full capacity that was lowered following the closure of a major domestic carrier in the first few months of financial year 2019-20 (April 2019 to March 2020) as well as disruptions at Mumbai airport owing to construction and maintenance, it said. Following the COVID-19 pandemic, while travel restrictions were being imposed elsewhere, India was largely unaffected till the end of March 2020, before the sharp escalation in travel bans globally and lockdowns impacted India's aviation sector too. "On account of its network strength, cost competitiveness, industry leading technology and best-in-class service standards, RIL improved its volume share in the domestic market," according to the annual report. Reliance Aviation has the highest market share in 20 per cent of the operating airports. "RIL is looking to increase its network to 45 locations as against 30 at the end of FY 2019-20 and is well geared to benefit with the growth in the Indian aviation market," it said. India currently has 256 aviation fuel stations, with state-owned Indian Oil Corp (IOC) owning 119 of them. Bharat Petroleum Corp Ltd (BPCL) has 61 and Hindustan Petroleum Corp Ltd (HPCL) the remaining 44. RIL is the largest private aviation fuel retailer with 31 stations, according to the latest data from the oil ministry. In comparison, RIL's auto fuel retailing network is very small. Out of 69,392 petrol pumps in the country, RIL operates 1,398. IOC has the highest number of outlets at 29,208, followed by HPCL with 16,557 and BPCL with 16,309 petrol pumps. Russia's Rosneft-backed Nayara Energy is the biggest private auto fuel retailer with 5,720 petrol pumps. RIL said it registered 9.8 per cent growth in retail diesel sales and 14.7 per cent in retail petrol volume as compared with 1.5 per cent and 6.3 per cent for industry, respectively. During financial year 2019-20, RIL registered over 10 per cent growth in average outlet sales volume. On bulk diesel, RIL said it registered a volume growth of 10.8 per cent, increasing market share to 8.8 per cent, despite expected demand contraction and margin pressure. Direct sales volume would be driven by continued volume growth from railways and sourcing higher volume shares in State Transport Units (STUs), it said. ANZ RVK

Reliance plans to up aviation fuel stations by 50 pc

New Delhi, Jan 26 () Reliance Industries' partnership with Saudi Aramco for its USD 75 billion oil-to-chemicals business signals expansion rather than retreat as growth opportunities are expected to boost the petrochemical and refining vertical, market analyst firm Bernstein said.
 Billionaire Mukesh Ambani had in August last year announced initial agreements to sell a 20 per cent stake in the oil-to-chemical business to the Saudi national oil company. Also, a 49 per cent interest in fuel retailing business was sold to UK's BP plc for Rs 7,000 crore.
 "Reliance has pivoted away from energy to the new economy. But energy still accounts for 64 per cent of EBITDA. While RIL has divested stakes to BP and Aramco, we expect RIL to grow their petrochemical and refining business given the secular growth opportunities," it said in a report.
 Stating that India has significant secular expansion (that is, unaffected by short-term trends) ahead in refined products and petrochemicals, it said with the lowest demand per capita of 1.3 barrels per person, demand for refined products will grow by 5 million barrels per day over the next two decades, more than any other major market.
 Ethylene demand could grow ten-fold from 5kg per person per annum to 50-60kg pp/pa as consumer demand rises.
 "Reliance partnership with Aramco and BP signals expansion ahead rather than retreat," Bernstein said. "Aramco's investment is to secure market access and growth. While refining is a cash cow for the business, we believe that there are significant opportunities for petrochemical expansion ahead given demand growth and synergies with refining."
 Fuels marketing will be significantly expanded given the partnership with BP and plans for 5,500 stations, it said.
 Ambani had in August last year announced that the deal with Aramco will close by March 2020 but it is now expected to close within the current calendar year.
 Refining and petrochemicals are a cash cow for Reliance.
 "But to think of this as an ex-growth part of the business would be a mistake. In India, there is strong secular demand growth ahead. India is estimated to be the fastest growing refined fuels market over the next 20 years (faster than China) and will also one of the fastest growing markets for petrochemicals given the per capita demand which will grow with the GDP," it said.
 As part of the August deal, Saudi Aramco will supply 500,000 barrels per day of crude on a long-term basis to RIL's Jamnagar refinery complex (40 per cent of the refining capacity).
 "While bears will argue that Reliance is stepping away from energy to digital, we see this deal as an opportunity to expand the downstream business in India with a solid partnership. For Aramco, the deal provides direct access to what is widely expected to be the fastest growing refined oil product market over the next 20 years," it said. "For Reliance, it provides cash to fund expansion of their digital business and further expansion of downstream capacity with an experienced partner."
 Bernstein also said in the short term it remains cautious on chemical margins, but more positive on refining.
 On RIL's oil and gas exploration and production business, it said output will start to recover from this year with new developments.
 "Reliance and partners are developing 3 trillion cubic feet of reserves in the KG-D6 block which can add gross production of 1 billion cubic feet per day and raise segment EBITDA back to Rs 120 billion," it said.
 The turnaround is based on three new projects which Reliance and partner BP has launched in the KG basin. Notably the R-Series, Satellites and MU development which together contain 3 trillion cubic feet (TCF) of reserves which will underpin a recovery in production.
 But the refining segment remains one of the most important contributors to earnings for Reliance.
 The single largest asset within Reliance's refining and petrochemical business is the Jamnagar complex, which is one of the world's largest refining hubs.
 The Jamnagar complex was built in 2000 with a capacity of 0.67 million barrels per day. After upgrades in 2008, Jamnagar's crude processing capacity has more than doubled to 1.24 million bpd. Not only is Jamnagar the largest refinery hub in the world, it is also one of the most complex refineries globally, allowing RIL to process discounted heavier crude oil into oil products.
 "In comparison to global oil majors, Reliance has relatively less refining capacity at 1.24 million bpd versus peers at 2.62 million bpd. However, Reliance has one of the best positions to grow its capacity over time given India's structural growth in oil demand over the next 20 years," it said. "Moreover, Reliance has one of the most profitable refining business relative to peers owing to the higher complexity of Jamnagar. Whether Reliance will choose to expand its existing footprint is not clear, but the relationship with Aramco (assuming the deal goes through) means that there could be options for further expansion."
 In fuels marketing, Reliance has also formed a new JV with BP last year to create a world-class fuel retailing network in India. Over the next 20 years, India is likely to be the fastest growing fuels market. The new JV company will assume ownership of RIL's existing fuel retail network and aviation fuel business.
 Under the new partnership, RIL will hold 51 per cent of the new JV company and BP will hold the remaining 49 per cent. The JV has plans to rapidly grow the fuel retail distribution network in India over the next 5 years. RIL currently has 1,400 sites across India including contribution of USD 1.9 billion per annum in revenue from owned petro retail outlets.
 The JV plans to expand this to 5,500 sites over the next 5 years, which represents 800 additional sites per year.
 "For BP, the JV gives them access to the fastest growing refined fuels market. It also allows BP to tap into convenience non-fuel retail in India which is growing rapidly. For Reliance, the transaction provides funding and enables them to tap into BP's extensive fuels marketing experience," it added. ANZ ABM

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