Recent fuel, transport and policy updates, in a clear and scan-friendly format.
India plans to expand its nuclear power capacity over the next two decades to meet energy security and climate goals. The country is building new reactors, including 700-MWe PHWRs and a 500-MWe PFBR. Private players are also being involved in developing small modular reactors and new nuclear technologies.
India's fuel consumption is rising while global demand weakens, affecting next year's crude purchase negotiations. The govt plans to pass benefits of a new oilfield law to winners of the ninth exploration licensing round. The volatile market may delay state-run companies from reducing consumer prices.
India and the US have agreed to boost sustainable aviation fuel, promote electrification of medium and heavy-duty vehicles, and use hydrogen in buses and tractors. The agreement was made during the Strategic Clean Energy Partnership dialogue, highlighting investments in clean energy markets and modernising power distribution for reliable energy access.
Reliance Industries and BP's joint venture has significantly increased its petrol and diesel sales in India this year, achieving a market share of 2.75% for petrol and 4.35% for diesel. Nayara also saw growth, while Shell experienced mixed results. Private players' market share in fuel retail has risen amid declining refining margins globally.
International oil prices remain volatile, causing uncertainty in petrol and diesel price reductions despite lower input costs. State-owned fuel retailers have not revised rates since late 2021, citing volatility. Petrol and diesel prices are currently frozen, with potential cuts before Maharashtra elections uncertain.
India, the world's third-largest energy consumer, is exploring biogas as a sustainable alternative to fossil fuels. Biogas can reduce energy costs, improve waste management, and lower greenhouse gas emissions. Government initiatives aim to boost biogas production, contributing to energy security and environmental sustainability.
Household consumption is expected to grow faster in the second quarter due to easing inflation and a revival of rural demand, according to the RBI bulletin. Retail inflation has slowed, boosting private consumption and investment activity. However, volatility in food prices remains a risk. The RBI projects real GDP growth at 7.2% for the current fiscal year.
Union Road Transport and Highways Minister Nitin Gadkari announced that Jammu and Kashmir holds 6% of the world's lithium stock, highlighting India's potential to produce lithium-ion batteries. He emphasised the future of electric vehicles and the need for alternate fuels like ethanol and hydrogen. Gadkari also discussed India's growing automobile industry and its significant export contributions.
Despite the shift towards cleaner energy, fossil fuels will still account for 40 to 60 per cent of global energy supply by 2050 due to slow EV adoption and challenges in scaling clean technologies. Renewables are expected to grow but require significant infrastructure investments.
Ather predicts that by 2031, electric two-wheelers will be 52% cheaper than petrol bikes even without subsidies, highlighting their long-term cost efficiency despite higher initial costs
Global crude oil prices recently slipped to below $70 per barrel, the lowest since December 2021
The proposed acquisition will enable the company to enter into the green and alternate fuels segment which is expected to witness strong and accelerated growth in the coming years, Lumax Auto said in a statement.
The company plans to onboard 20,000 fuel pump outlets and extend its app's language offerings.
India's retail inflation rose to 3.65% in August from a five-year low of 3.54%. Food inflation, making up half of the CPI basket, increased to 5.66%. Despite staying within RBI's tolerance range, it remains above the target of 4%. A weak rupee and monsoon risks may keep inflation pressures high.
Ministry of Road Transport & Highways Secretary Anurag Jain has advocated for the scrapping of pre-BS era vehicles, particularly commercial heavy vehicles, due to pollution and safety concerns. He highlighted that these older vehicles contribute significantly to pollution and have higher fuel and maintenance costs. The government is working on incentivizing vehicle scrapping.
