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India aims to import about 10% of its cooking gas from US from 2026, say sources
India aims to import about 10% of its cooking gas from US from 2026, say sources

Zawya

time08-07-2025

  • Business
  • Zawya

India aims to import about 10% of its cooking gas from US from 2026, say sources

NEW DELHI - India plans to source about 10% of its cooking gas imports from the U.S. beginning in 2026 as part of a broader effort to boost energy purchases to narrow its trade gap with Washington, four industry refining sources familiar with the matter said. The world's third biggest oil importer and consumer relies heavily on Middle Eastern producers of liquefied petroleum gas (LPG), with more than 90% of its roughly 20.5 million metric tons of imports in 2024 coming from the region. LPG is a mix of propane and butane used for cooking fuel and is mainly imported by state retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp and sold at a subsidised price to households. India had rarely bought U.S. LPG in the past due to higher freight costs, but state retailers began buying U.S. LPG in May after China imposed retaliatory import tariffs on U.S. propane. India plans to eliminate import tax on U.S. propane and butane used for making LPG, sources previously told Reuters. India has pledged to increase U.S. energy purchases by $10 billion to $25 billion in the near future and the two nations in February agreed to target $500 billion in bilateral trade by 2030. India's import of U.S. oil has more than doubled this year, data obtained from sources showed. "We are looking to the U.S. as a reliable alternative source of both crude and LPG. We need to diversify our sources of LPG," said one of the sources who declined to be named because he was not authorised to speak to media. India has been diversifying its crude oil suppliers to reduce geopolitical risks and support its growing refining capacity. However, its LPG suppliers remain concentrated in the Middle East, typically purchased on a free-on-board (FOB) basis. Chinese import tariffs on U.S. propane, currently at 10%, have opened up arbitrage opportunities for Indian buyers, further incentivising a shift toward U.S. cargoes, a second source said. "We would prefer to import from the U.S. on a delivered basis to mitigate freight risks — similar to how we already buy U.S. crude," he said. Indian state refiners are seeing annual LPG demand growth of about 5% to 6%, with total imports projected to rise to 22 million tonnes to 23 million tonnes by 2026, two of the sources said. India's oil ministry and the three state fuel retailers did not immediately respond to requests for comment. Pricing will be key to determining the exact volume of U.S. LPG imports, a third industry source said. The International Energy Agency expects India's LPG demand to grow at an average of 2.5% between 2024 and 2030, reaching 1.2 million barrels per day, or roughly 37.7 million tonnes. (Reporting by Nidhi Verma; Editing by Tony Munroe and Kate Mayberry)

Exclusive: India aims to import about 10% of its cooking gas from US from 2026, say sources
Exclusive: India aims to import about 10% of its cooking gas from US from 2026, say sources

Reuters

time08-07-2025

  • Business
  • Reuters

Exclusive: India aims to import about 10% of its cooking gas from US from 2026, say sources

NEW DELHI, July 8 (Reuters) - India plans to source about 10% of its cooking gas imports from the U.S. beginning in 2026 as part of a broader effort to boost energy purchases to narrow its trade gap with Washington, four industry refining sources familiar with the matter said. The world's third biggest oil importer and consumer relies heavily on Middle Eastern producers of liquefied petroleum gas (LPG), with more than 90% of its roughly 20.5 million metric tons of imports in 2024 coming from the region. LPG is a mix of propane and butane used for cooking fuel and is mainly imported by state retailers Indian Oil Corp ( opens new tab, Bharat Petroleum Corp ( opens new tab and Hindustan Petroleum Corp ( opens new tab and sold at a subsidised price to households. India had rarely bought U.S. LPG in the past due to higher freight costs, but state retailers began buying U.S. LPG in May after China imposed retaliatory import tariffs on U.S. propane. India plans to eliminate import tax on U.S. propane and butane used for making LPG, sources previously told Reuters. India has pledged to increase U.S. energy purchases by $10 billion to $25 billion in the near future and the two nations in February agreed to target $500 billion in bilateral trade by 2030. India's import of U.S. oil has more than doubled this year, data obtained from sources showed. "We are looking to the U.S. as a reliable alternative source of both crude and LPG. We need to diversify our sources of LPG," said one of the sources who declined to be named because he was not authorised to speak to media. India has been diversifying its crude oil suppliers to reduce geopolitical risks and support its growing refining capacity. However, its LPG suppliers remain concentrated in the Middle East, typically purchased on a free-on-board (FOB) basis. Chinese import tariffs on U.S. propane, currently at 10%, have opened up arbitrage opportunities for Indian buyers, further incentivising a shift toward U.S. cargoes, a second source said. "We would prefer to import from the U.S. on a delivered basis to mitigate freight risks — similar to how we already buy U.S. crude," he said. Indian state refiners are seeing annual LPG demand growth of about 5% to 6%, with total imports projected to rise to 22 million tonnes to 23 million tonnes by 2026, two of the sources said. India's oil ministry and the three state fuel retailers did not immediately respond to requests for comment. Pricing will be key to determining the exact volume of U.S. LPG imports, a third industry source said. The International Energy Agency expects India's LPG demand to grow at an average of 2.5% between 2024 and 2030, reaching 1.2 million barrels per day, or roughly 37.7 million tonnes.

Exclusive-India aims to import about 10% of its cooking gas from US from 2026, say sources
Exclusive-India aims to import about 10% of its cooking gas from US from 2026, say sources

Yahoo

time08-07-2025

  • Business
  • Yahoo

Exclusive-India aims to import about 10% of its cooking gas from US from 2026, say sources

By Nidhi Verma NEW DELHI (Reuters) -India plans to source about 10% of its cooking gas imports from the U.S. beginning in 2026 as part of a broader effort to boost energy purchases to narrow its trade gap with Washington, four industry refining sources familiar with the matter said. The world's third biggest oil importer and consumer relies heavily on Middle Eastern producers of liquefied petroleum gas (LPG), with more than 90% of its roughly 20.5 million metric tons of imports in 2024 coming from the region. LPG is a mix of propane and butane used for cooking fuel and is mainly imported by state retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp and sold at a subsidised price to households. India had rarely bought U.S. LPG in the past due to higher freight costs, but state retailers began buying U.S. LPG in May after China imposed retaliatory import tariffs on U.S. propane. India plans to eliminate import tax on U.S. propane and butane used for making LPG, sources previously told Reuters. India has pledged to increase U.S. energy purchases by $10 billion to $25 billion in the near future and the two nations in February agreed to target $500 billion in bilateral trade by 2030. India's import of U.S. oil has more than doubled this year, data obtained from sources showed. "We are looking to the U.S. as a reliable alternative source of both crude and LPG. We need to diversify our sources of LPG," said one of the sources who declined to be named because he was not authorised to speak to media. India has been diversifying its crude oil suppliers to reduce geopolitical risks and support its growing refining capacity. However, its LPG suppliers remain concentrated in the Middle East, typically purchased on a free-on-board (FOB) basis. Chinese import tariffs on U.S. propane, currently at 10%, have opened up arbitrage opportunities for Indian buyers, further incentivising a shift toward U.S. cargoes, a second source said. "We would prefer to import from the U.S. on a delivered basis to mitigate freight risks — similar to how we already buy U.S. crude," he said. Indian state refiners are seeing annual LPG demand growth of about 5% to 6%, with total imports projected to rise to 22 million tonnes to 23 million tonnes by 2026, two of the sources said. India's oil ministry and the three state fuel retailers did not immediately respond to requests for comment. Pricing will be key to determining the exact volume of U.S. LPG imports, a third industry source said. The International Energy Agency expects India's LPG demand to grow at an average of 2.5% between 2024 and 2030, reaching 1.2 million barrels per day, or roughly 37.7 million tonnes.

Explained: Why are oil sector stocks rising today?
Explained: Why are oil sector stocks rising today?

India Today

time24-06-2025

  • Business
  • India Today

Explained: Why are oil sector stocks rising today?

Oil sector stocks displayed gains today, influenced by recent geopolitical events. A ceasefire between Iran and Israel, announced by US President Donald Trump, led to fluctuations in oil ceasefire announcement triggered a decline in oil prices, which had experienced a prior surge due to geopolitical tensions. The benchmark Brent crude contract fell below $70 per barrel after reaching a peak of $81.40 earlier this decline was further impacted by Iran's decision to refrain from disrupting supply through the Strait of Hormuz, choosing instead to target a U.S. military base in Qatar. The Nifty Oil & Gas index recorded a gain of 0.90%, with individual stocks showing mixed such as Hindustan Petroleum and Bharat Petroleum Corporation Limited saw increases of 4.16% and 3.27%, notable gainers included Indian Oil Corporation (up 2.89%) and Castrol India (up 2.20%). However, some companies faced declines, notably ONGC, which dropped by 1.70%.The positive sentiment in the oil sector was driven by reduced fears of supply disruptions, which had previously put upward pressure on situation is closely tied to India's economic outlook, given its reliance on imported crude oil. A sustained drop in oil prices could ease inflationary this month, the Reserve Bank of India revised its inflation forecast for 2025 to 3.7% and reduced its key lending rate by 50 basis points, a steeper-than-expected cut. This move by the central bank reflects an optimistic view of the inflation trajectory, contingent on stable oil prices. The reduction in lending rates is also aimed at stimulating economic growth by making borrowing cheaper for businesses and consumers.- EndsMust Watch

Will Fuel Prices Rise In India Amid Middle East Crisis? Here's What Hardeep Puri Said
Will Fuel Prices Rise In India Amid Middle East Crisis? Here's What Hardeep Puri Said

India.com

time23-06-2025

  • Business
  • India.com

Will Fuel Prices Rise In India Amid Middle East Crisis? Here's What Hardeep Puri Said

New Delhi: Petroleum and Natural Gas Minister Hardeep Singh Puri on Sunday allayed fears over any disruption in oil supplies to Indian consumers due to the Israel-Iran war and further escalation in geopolitical tensions in the Middle East because of the US bombing of Iran's nuclear sites. "We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks. Under the leadership of Prime Minister Narendra Modi, we have diversified our supplies in the past few years, and a large volume of our supplies does not come through the Strait of Hormuz now," the minister said. He pointed out that the country's oil marketing companies (Indian Oil, Bharat Petroleum and Hindustan Petroleum) have supplies for several weeks and continue to receive energy supplies from several routes. "We will take all necessary steps to ensure the stability of supplies of fuel to our citizens," the minister assured. Iran is situated on the northern side of the Strait of Hormuz/Persian Gulf, through which 20 million barrels of oil per day flow from major exporting countries such as Saudi Arabia and the UAE. Iran had threatened to block this route if the US intervened in the conflict with Israel. A wider Middle East conflict is expected to have an impact on oil supplies from Saudi Arabia, Iraq, Kuwait and the UAE, which would lead to a sharp spike in oil prices. Shipping could also get hit as Yemen's Houthi rebels have already warned that they would resume their attacks on ships if the US attacked Iran. India imports around 85 per cent of its crude oil requirement, and a surge in oil prices leads to an increase in its oil import bill and pushes up the rate of inflation, which hurts economic growth. The larger outgo of foreign exchange also leads to a weakening of the rupee vis-a-vis the US dollar. However, India has diversified its oil sources by increasing imports from Russia as well as the US and building resilience through strategic reserves. Highlighting the infrastructure milestones in the oil and gas sector, Puri had earlier said that the country now has 23 modern operational refineries with a total capacity of 257 million metric tonnes per annum to produce petroleum products. The minister also highlighted the ministry's initiative in setting up storage facilities for strategic petroleum reserves, on which the country can fall back in times of emergency and which assume importance during times of geopolitical uncertainty. These reserves can also be dipped into at times when global prices skyrocket to provide a cushion to the national oil companies. The minister mentioned that the storage capacity at Pudur is 2.25 million metric tonnes (MMT), the Visakhapatnam facility has the capacity to store 1.33 MMT of crude oil, while Mangalore has a storage capacity of 1.5 MMT. Besides, another strategic reserve facility is being built at Chandikhol, which is also on the coast.

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