Global Governanace News

Tag: Oil Marketing Companies

  • Govt Refutes Fuel Contamination Claims in E20 Petrol

    Govt Refutes Fuel Contamination Claims in E20 Petrol

    • OMCs reject claims of high chloride and moisture in E20 petrol.
    • Nationwide testing found chloride levels within prescribed limits.
    • Over 1,000 retail outlet samples tested under intensified surveillance.
    • Consumers urged to continue using E20 petrol with confidence.

    GG News Bureau
    New Delhi, 8th Aug: Oil Marketing Companies (OMCs) on Friday dismissed reports alleging excessive moisture and chloride contamination in E20 petrol, saying extensive nationwide testing across the fuel supply chain found no evidence to support such claims.

    In a statement, the OMCs said additional intensive testing was carried out from refineries and distilleries to depots, tank trucks and retail outlets, reaffirming that fuel quality remained well within the prescribed standards.

    The companies said random scientific testing did not validate claims of chloride levels reaching 500 ppm or the presence of moisture affecting fuel quality.

    According to the OMCs, petrol samples collected from refineries recorded chloride levels at or below 1 ppm, while ethanol samples from 80 distilleries across the country contained less than 3 ppm chloride.

    More than 80 samples collected from depots and terminals also showed chloride levels below 3 ppm.

    Under an intensified monitoring programme, over 1,000 retail outlet samples were collected, with 160 reports analysed so far. Chloride levels ranged between 0 and 3 ppm, the statement said. Only four isolated cases of elevated chloride levels were detected, following which supplies were immediately suspended until corrective measures were completed.

    The OMCs also said around 90,000 retail outlets have begun mandatory inspections of underground storage tanks, with water-ingress tests being conducted 8 to 12 times daily. No instances of water ingress have been detected so far.

    The companies added that mobile fuel-testing laboratories have been deployed across the country, while test results are being independently validated through fuel laboratories to maintain quality standards.

    OMCs reiterated that India’s ethanol blending programme is supported by stringent quality specifications and continuous monitoring at every stage of the supply chain.

    They urged consumers to continue using E20 petrol with confidence, stating that fuel supplied through the OMC network conforms to prescribed quality standards and is backed by robust quality assurance mechanisms.

  • Govt Restores Commercial LPG Supply to Pre-Crisis Levels

    Govt Restores Commercial LPG Supply to Pre-Crisis Levels

    • Government restores non-domestic packed LPG supply to pre-West Asia crisis levels.
    • Bulk LPG supply resumed at 50% of pre-crisis consumption.
    • Restrictions on C3-C4 allocation eased while protecting domestic LPG availability.
    • OMCs directed to strengthen monitoring as PNG transition continues.

    GG News Bureau
    New Delhi, 25th June: The Central Government has restored supplies of non-domestic packed LPG to pre-West Asia crisis levels, withdrawing all sectoral restrictions imposed earlier on commercial and industrial consumers following an improvement in the country’s LPG supply situation.

    The Ministry of Petroleum and Natural Gas also announced that bulk LPG supplies, which had been suspended during the crisis, have been partially resumed at 50 per cent of pre-crisis consumption levels, providing significant relief to industrial and commercial users.

    The restrictions were imposed during the West Asia crisis under the Essential Commodities Act, requiring C3-C4 hydrocarbon streams to be diverted exclusively for domestic LPG production to ensure uninterrupted household supplies.

    With indigenous LPG production improving and imported cargo availability expected to remain stable, the Government has now reduced the diversion of C3-C4 streams to the LPG pool, allowing increased allocation for petrochemical and other critical industries while ensuring domestic LPG production remains above 40 thousand metric tonnes per day.

    The Centre has directed the Centre for High Technology (CHT) to allocate the enhanced C3-C4 streams among eligible organisations and submit regular monitoring reports to the Ministry.

    The Government said the temporary restrictions had helped maintain uninterrupted LPG supplies to domestic consumers despite disruptions in global supply chains caused by the West Asia conflict.

    Oil Marketing Companies (OMCs) have also been instructed to maintain comprehensive databases of commercial and industrial LPG consumers to improve planning, monitoring and supply management through a unified sectoral database.

    The Ministry reiterated its commitment to expanding the use of Piped Natural Gas (PNG), stating that commercial and bulk consumers already connected to PNG will continue using the cleaner fuel, while other eligible LPG consumers will be gradually shifted to PNG in coordination with City Gas Distribution entities.

    The Petroleum Secretary has written to Chief Secretaries of all States and Union Territories to facilitate smooth implementation of the revised supply arrangements. The Government said the decision balances national energy security with the continued expansion of cleaner and more efficient fuel alternatives.

  • Rs 10000 Cr ATF Price Stabilisation Fund Approved for Airlines

    Rs 10000 Cr ATF Price Stabilisation Fund Approved for Airlines

    • Cabinet approves ₹10,000-crore ATF Price Stabilisation Fund
    • Support to cover domestic and international operations of Indian airlines
    • Fixed-price mechanism to reduce exposure to fuel price shocks
    • Measure aimed at protecting connectivity and moderating airfare volatility

    GG News Bureau
    New Delhi, 4th June: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a one-time ₹10,000-crore Price Stabilisation Fund to support Scheduled Indian Airlines amid soaring Aviation Turbine Fuel (ATF) prices triggered by the ongoing West Asia crisis.

    The scheme will provide budgetary support to Oil Marketing Companies (OMCs) through interest-free advances, enabling them to offer ATF price stabilisation support to Indian airlines for both domestic and international operations.

    According to the government, the initiative is designed to provide stability and predictability in fuel costs, helping airlines better manage operations and finances during a period of exceptional fuel price volatility.

    Under the approved mechanism, up to ₹10,000 crore will be provided as an interest-free advance to OMCs. The fund will compensate oil companies when international ATF prices exceed the benchmark level determined under the scheme.

    The government has also incorporated a recovery mechanism. Once international fuel prices decline, the differential amount will be recovered from OMCs and returned to the Consolidated Fund of India until the entire support amount is fully settled.

    The scheme will be available to all willing Scheduled Indian carriers and will cover both domestic and international flight operations. A fixed-price arrangement has been introduced to reduce airlines’ exposure to sudden fuel price spikes.

    As part of the arrangement, participating airlines will procure ATF exclusively from OMCs for up to three years through agreements signed with the Ministry of Civil Aviation and the Ministry of Petroleum and Natural Gas. The arrangement will be subject to annual review or continue until the advance amount is fully recovered, whichever is earlier.

    A Monitoring Committee comprising representatives from the Ministries of Civil Aviation and Petroleum and Natural Gas, along with the Department of Expenditure, will oversee implementation, claim verification and settlement processes. All claims and recoveries will be subject to audit.

    The support mechanism will remain in force for 36 months, with provision for annual review and possible extension if required.

    The Cabinet noted that the aviation sector has been severely affected by unprecedented fluctuations in global fuel prices. International ATF prices have surged from ₹60.50 per litre in March 2026 to nearly ₹142 per litre in May 2026 due to the West Asia crisis. ATF currently accounts for nearly 40 per cent of airline operating costs and can rise to as much as 60 per cent during periods of extreme volatility.

    The situation has been compounded by the closure of Pakistan’s airspace for Indian carriers, forcing longer flight routes to Europe, North America and Central Asia, resulting in higher fuel consumption and operational expenses.

    According to the government, the measure will help maintain domestic and international air connectivity, support services to remote and regional destinations, and reduce the pass-through of fuel price shocks to passengers.

    Officials said the initiative is expected to benefit not only airlines but also related sectors such as airports, ground handling services, maintenance and repair operations, tourism, hospitality, logistics and trade, while ensuring optimal utilisation of airport infrastructure developed across the country, including airports operationalised under the UDAN scheme.