For petrol, Indians shell out the most in the world
Petrol in India is more expensive than 98 other countriesFor all those already reeling under a series of hikes in petrol prices on the back of zooming inflation, here is some news that will enrage you further. Data of retail prices in countries across the world shows that Indian prices are amongst the highest in the world at current exchange rates. And, if you even out the differences in purchasing power of different currencies then Indian petrol and diesel prices become the highest barring some tiny, remote countries.
Even a simple comparison of retail prices in different countries by converting them to Indian rupee reveals that petrol in India is more expensive than 98 other countries. Among 157 countries for which data is available, those belonging to the Organization of Petroleum Exporting Countries have the lowest price.
The Organisation of Petroleum Exporting Countries (OPEC) are the ones that have huge oil reserves and are its main producers. So, petrol is cheapest in Venezuela at just Rs 1.14 per litre. In Iran it sells for Rs 4.8 per litre. The second group comprises of countries like the US, Iraq, Indonesia, etc, where minimal tax is levied on petroleum products. They also have lower prices than India. A litre of petrol costs Rs 42.82 in the US.
India tops the group of countries which have moderate to high tax regimes. Others in the group are the EU countries and others like Singapore, New Zealand, Thailand and Brazil. At Rs 69.90 -the average price of petrol in 24 Indian cities -Indian prices are now comparable to price of petrol in EU. Romania has EU's cheapest petrol at Rs 72.33 per litre.
However, price comparisons done like this - by converting into one currency using the exchange rate - are deceptive. Petrol prices equivalent to Rs 96.39 in the UK might not pinch the English in the same way as Rs 69.90 will clobber Indians.
So, how does one compare prices across countries? This is done by the widely used Purchasing Power Parity (PPP) method. Differences in purchasing powers are evened out and relatively real price comparisons emerge. Using PPP prices, petrol is by far much more costlier in India than most countries. PPP price of petrol in India is $3.95, lower than just three small countries - Timor-Leste, Malawi and Eritrea.
Petrol costs less than a dollar in the OPEC and USA while in most of Europe, Russia, Japan, China and the Americas it is priced between one to two international dollars by PPP calculations.
Despite huge subsidies, diesel is more expensive in India than 136 other countries. Costing $2.46 at PPP, India is 23rd most expensive in diesel prices. Can anybody explain why Indians have to bear this unbearable burden? Courtesy: TOI
Sunday, October 9, 2011
BPCL to venture into niche petrochemicals
BPCL to invest Rs 40,000 crore to venture into niche petrochemicals
20 Sep 2011
Bharat Petroleum Corporation Ltd (BPCL) is planning to invest Rs 40,000 crores to venture into the niche petrochemical segment. With this, India's second biggest oil marketing company will diversify its business portfolio and de-risk its business model, as per a DNA report.
Talks are underway with several foreign players who might be interested in sharing technology with BPCL and picking up equity stake in the project. The investment will be done over the next five years which will help to strengthen company's current operations, expand its refining business, enable investment in exploration and production and diversification into newer areas such as petrochemicals.
The company will invest around Rs 5,000-6,000 crore in a complex which will be operational in the next five years, and produce polypropylene and acrylic acid. Feedstock will be supplied by BPCL's 9.5 mln tpa Kochi refinery which will also be expanded further to 15.5 mln tpa in the next five year period.
20 Sep 2011
Bharat Petroleum Corporation Ltd (BPCL) is planning to invest Rs 40,000 crores to venture into the niche petrochemical segment. With this, India's second biggest oil marketing company will diversify its business portfolio and de-risk its business model, as per a DNA report.
Talks are underway with several foreign players who might be interested in sharing technology with BPCL and picking up equity stake in the project. The investment will be done over the next five years which will help to strengthen company's current operations, expand its refining business, enable investment in exploration and production and diversification into newer areas such as petrochemicals.
The company will invest around Rs 5,000-6,000 crore in a complex which will be operational in the next five years, and produce polypropylene and acrylic acid. Feedstock will be supplied by BPCL's 9.5 mln tpa Kochi refinery which will also be expanded further to 15.5 mln tpa in the next five year period.
BPCL to focus on low cost refinery expansions
BPCL to focus on low-cost refinery expansions
19 Sep 2011
Bharat Petroleum Corporation plans to achieve refining capacity of nearly 42 million tonnes by 2015-16 where the focus will be on low-cost expansions. Kochi Refinery will see the largest capacity increase to 15.5 mt from 9.5 mt during this period. The recently commissioned Bina refinery, a joint venture with Oman Oil, will be up to nine mt as part of a ‘creeping expansion' exercise using the existing infrastructure.
Mr R.K. Singh, Chairman and Managing Director, told Business Line that in the case of the Mumbai refinery, two decades-old crude distillation units would be replaced by a brand new one. As a result, its capacity would go up to 14 mt from 12 mt.
More importantly, this will create more space and ensure better fuel efficiency in the refinery. “Strictly speaking, this is really not an expansion, but (it) will help improve capacity utilisation,” he said.
Investment outlay The Numaligarh refinery in Assam will stay untouched at three mt though sources said that its capacity could be doubled at a later stage depending on the availability of crude.
These initiatives on the refining front will form part of BPCL's Rs 40,000-crore investment outlay over the next five years. The money will also be earmarked for entry into new areas like gas and petrochemicals with Rs 10,000 crore set aside for exploration & production.
After 2015-16, BPCL will look at the second phase of the Bina refinery expansion to 15 million tonnes, though Mr Singh reiterated that revenue generation for the project would remain top priority. The company will then consider the new Allahabad refinery (whose capacity could be 9-12 mt) if there is growing demand for petro-products in the northern region.
If these projects go according to schedule, BPCL's refining capacity would be a little over 60 million tonnes by 2020. “For the moment, though, we prefer the low-cost expansion route to setting up a grassroots refinery,” Mr Singh said.
Observers of the oil industry say this approach makes sense in the context of the refiners' losses incurred on selling subsidised fuel such as diesel, cooking gas and kerosene.
When compensation from the Centre takes time in coming, borrowings increase (BPCL's alone is closer to Rs 24,000 crore) but the show will literally have to go on in terms of investments in key infrastructure.
19 Sep 2011
Bharat Petroleum Corporation plans to achieve refining capacity of nearly 42 million tonnes by 2015-16 where the focus will be on low-cost expansions. Kochi Refinery will see the largest capacity increase to 15.5 mt from 9.5 mt during this period. The recently commissioned Bina refinery, a joint venture with Oman Oil, will be up to nine mt as part of a ‘creeping expansion' exercise using the existing infrastructure.
Mr R.K. Singh, Chairman and Managing Director, told Business Line that in the case of the Mumbai refinery, two decades-old crude distillation units would be replaced by a brand new one. As a result, its capacity would go up to 14 mt from 12 mt.
More importantly, this will create more space and ensure better fuel efficiency in the refinery. “Strictly speaking, this is really not an expansion, but (it) will help improve capacity utilisation,” he said.
Investment outlay The Numaligarh refinery in Assam will stay untouched at three mt though sources said that its capacity could be doubled at a later stage depending on the availability of crude.
These initiatives on the refining front will form part of BPCL's Rs 40,000-crore investment outlay over the next five years. The money will also be earmarked for entry into new areas like gas and petrochemicals with Rs 10,000 crore set aside for exploration & production.
After 2015-16, BPCL will look at the second phase of the Bina refinery expansion to 15 million tonnes, though Mr Singh reiterated that revenue generation for the project would remain top priority. The company will then consider the new Allahabad refinery (whose capacity could be 9-12 mt) if there is growing demand for petro-products in the northern region.
If these projects go according to schedule, BPCL's refining capacity would be a little over 60 million tonnes by 2020. “For the moment, though, we prefer the low-cost expansion route to setting up a grassroots refinery,” Mr Singh said.
Observers of the oil industry say this approach makes sense in the context of the refiners' losses incurred on selling subsidised fuel such as diesel, cooking gas and kerosene.
When compensation from the Centre takes time in coming, borrowings increase (BPCL's alone is closer to Rs 24,000 crore) but the show will literally have to go on in terms of investments in key infrastructure.
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