Sanjeev Choudhary

India is turning a new leaf in energy efficiency by rolling out E85 fuel, an environmentally friendly ethanol blend consisting of 85% ethanol, with a significant discount of Rs 20 per litre.

India's demand for transportation fuels and petroleum products is declining due to supply disruptions and higher prices stemming from the Iran war. Total refined product consumption dropped 6.5% in May, with subdued growth in petrol and diesel sales, indicating weakening economic activity.

Iran war impact: Oil prices are projected to average $105 per barrel in June and July. This forecast assumes continued Strait of Hormuz disruptions and falling global oil stocks. Despite recent strikes between the US and Iran, prices remain below $100. Markets anticipate a truce and negotiations. Global demand destruction also limits price increases.

Indian refinery executives anticipate oil prices falling below $80 per barrel within weeks if a US-Iran agreement is signed Friday, reopening the Strait of Hormuz. This deal would end hostilities, lift the US naval blockade, and allow for the swift return of Iranian crude to global markets.

India may adopt a China-like strategy for its oil reserves. Refiners could be required to hold significantly more crude oil. This move aims to protect the nation from future supply shocks. The proposal is in its early stages. Refiners might face substantial costs for storage and oil purchases. This policy could bolster India's energy security.

India is weighing a China-style policy to mandate domestic refiners to build and maintain significantly larger crude oil inventories to cushion the country against future supply disruptions such as those triggered by the Iran war, according to people familiar with the matter.

India plans to boost its oil security. Oil and Natural Gas Corporation, ONGC, will build a new strategic petroleum reserve facility in Mangaluru. This project will significantly increase the nation's emergency crude storage capacity. The government aims to strengthen energy security following past supply disruptions. This move marks a new approach with a state-run company developing such a reserve.

Indias crude oil imports have returned to normal levels in June, recovering after earlier disruptions caused by geopolitical tensions and supply bottlenecks linked to the Strait of Hormuz, according to Kpler data.

Normalcy returned to India's crude oil imports in June, boosted by record Russian shipments, recovering from a few months of disruptions that saw an unlikely mix of suppliers spanning Angola, Brazil, Iran and Venezuela moving to cushion the impact of logistical bottlenecks due to closure of the Strait of Hormuz.

India Crude Oil Imports: India's crude oil imports stabilise in June, achieving over 5 million barrels per day, with Russia supplying more than half due to increased shipments in light of geopolitical shifts.