India plans to raise refining capacity by 77% by 2030

India’s economic expansion is driving up fuel consumption, with increased energy access for commercial and retail consumers. (Reuters)
Updated 08 February 2018
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India plans to raise refining capacity by 77% by 2030

NEW DELHI: Refiners in India, the world’s third-biggest oil consumer and importer, have drawn up plans to raise their capacity by 77 percent to about 8.8 million barrels per day (bpd) by 2030 to meet the country’s rising fuel demand. India’s refining expansion plan will ensure the nation’s surplus production of diesel and petrol will last until 2035, according to a report by the Ministry of Petroleum and Natural Gas.

India is emerging as one of the key global drivers for refined fuels consumption as its economic expansion and rising industrial activity yields infrastructure improvements and increased energy access for commercial and retail consumers.
If current patterns of use continue, the country’s fuel demand could rise to as much as 335 million tons by 2030, and 472 million tons by 2040, from about 194 million tons last year, the oil ministry’s report said.
On the basis of expansion plans submitted by refiners to the government, petrol production will remain in surplus up to 2035, turning into a deficit in 2040, according to the report.
A spokesman for the oil ministry declined to discuss the report further when contacted by phone. Diesel will remain in surplus until about 2035, beyond which domestic demand will overtake supply, the report said. The report also forecast a growth of 5 percent or more each year in India’s petrol, diesel and jet fuel demand to 2030. The report recommended the refiners set up petrochemical projects and cut production of petcoke and fuel oil.


Strike-hit Ryanair warns fares to remain soft as summer profit falls

Updated 8 min 23 sec ago
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Strike-hit Ryanair warns fares to remain soft as summer profit falls

  • Ryanair three weeks ago cut its forecast for full-year profit by 12 percent
  • Europe’s largest low-cost carrier has struggled with labor relations since it bowed to pressure to recognize trade unions for the first time last December

DUBLIN: Ryanair reported a 7 percent fall in profit during its key April-September season on Monday, citing higher fuel costs and damage to bookings caused by strikes, and said European short-haul airfares would remain soft this winter.
Ryanair three weeks ago cut its forecast for full-year profit by 12 percent and warned that worse may follow if a recent wave of pilot and cabin crew strikes across Europe continue to hit traffic and bookings.
Europe’s largest low-cost carrier has struggled with labor relations since it bowed to pressure to recognize trade unions for the first time last December. It said it hoped to finalize more union agreements in the coming months but could not rule out further industrial action.
Shares of Ryanair, which is also counting the cost of stubbornly high fuel prices, closed on Friday at €11.51, down 20 percent compared to three months ago and down 40 percent from a peak of €19.39 in August last year before its staff problems emerged.
Ryanair, which traditionally makes most of its profit in the summer, reported a profit of €1.2 billion ($1.38 billion) in the six months to September 30. It reiterated its full-year profit forecast of between €1.1 billion and €1.2 billion.
That would represent a 17-24 percent fall from the record €1.45 billion post-tax profit booked in its most recent financial year to March 31.
A poll of over 10 analysts by Ryanair ahead of the results found an average forecast of €1.127 billion for the full year and €1.175 billion for the six months to September 30.
“This full year guidance remains heavily dependent on air fares not declining further — they remain soft this winter due to excess capacity in Europe — (and) the impact of significantly higher oil prices on our unhedged exposures,” Ryanair CEO Michael O’Leary said in a statement.
But he said Ryanair’s cost advantage over rivals is widening and “over the medium term, consolidation will create growth opportunities for Ryanair’s lowest fare/lowest cost model.”