Sanjeev Choudhary

India's refiners are poised to benefit from a rapidly improving business environment, fuelled by the retreat of crude prices to pre-war levels and expansion of cheaper supply options with the reopening of the Strait of Hormuz.

Benchmark Brent fell to around $72 a barrel Thursday, down from an average of $99 in first week of June and $109 during the three months till May. Russia has resumed offering discounts, reversing the hefty premiums it charged after the Iran war began.

The government is actively seeking a new chairman for ONGC, with applications now open. Eligibility rules have been relaxed, removing the mandatory retirement at 60 and introducing a fixed three-year tenure, extendable by two years. The maximum age for applicants has been raised to 59.

Ongc: Eligibility rules have been relaxed, removing the mandatory retirement at 60 and introducing a fixed three-year tenure, extendable by two years. The maximum age for applicants has been raised to 59.

India's crude oil reserves have surged to a near one-year peak, reaching 104 million barrels by June's end. This rebound follows a significant drawdown in the preceding months, driven by strong import volumes that replenished stocks. Current reserves can sustain approximately 21 days of consumption, easing concerns over supply disruptions, particularly with the Strait of Hormuz transit now more stable.

Current reserves can sustain approximately 21 days of consumption, easing concerns over supply disruptions, particularly with the Strait of Hormuz transit now more stable.

State-run oil companies faced significant losses in the April-June quarter, losing ₹18.9 per litre on diesel and ₹6 on petrol. This downturn occurred as domestic fuel prices failed to keep pace with rising international rates. Previously, these companies enjoyed healthy profits, but fluctuating global prices and limited domestic revisions have led to volatile retail margins, impacting profitability.

India is weighing a plan to fund emergency liquefied natural gas stockpiles. This initiative aims to bolster supply security after recent global disruptions. Policymakers are considering raising regasification tolls to finance expanded terminal storage capacity. Terminal operators could recover investment costs by charging higher fees to importers. This approach seeks to build storage faster than direct government financing.

City gas distributors face government targets for household piped natural gas connections. Companies describe these ambitious goals as unrealistic due to infrastructure and capital constraints. The government aims to accelerate connections, which are currently at 9,000 daily. This push follows disruptions in LPG supplies, promoting domestic fuel sources. Industry executives cite execution bottlenecks and weak consumer demand as major challenges.

Industry executives said India should be able to source alternative crude and LNG supplies, albeit at higher prices. LPG supplies, however, which depend heavily on imports from the Gulf, could again come under strain. One executive also warned that the renewed conflict has introduced deeper uncertainties at a time when global inventories have already been depleted after months of stock drawdowns.